Again the British pound came under the pressure of the falling of the UK retail sales which came below the market expectation of 3% y/y and 1.1% m/m in December at just 2.1% and .3% m/m after falling in November by .3%.Which was the reason of breaking 1.61 too in December after that weak release which shows the sluggish pace of the consuming spending in UK which can have a negative impact on the final figure of UK GDP of Q4 which is cautiously waited as the market is curiously waiting for the release of these Q4 growth data which can effect on the directions of the forex market directions by God's will.

As it is important to the British pound to see the UK economy getting out from the recession which has persisted in the third quarter in the fourth which was the only economy in recession in the western Europe in the third quarter of last year as the UK government has pledged earlier while the market is waiting for a stronger recovery in EU and US as the ISM and PMI data of both of the manufacturing and services sectors have improved in the recent months well above 50 with the improving which is running gradually in the US labor market after surprising rising of last November non-farm payroll by 4k jobs after first revision showing losing by just 11k before losing again 85k jobs in December which showing that the labor market in US is still trying to form a bottom following the recovery which is still trying to gain momentum too.

After sending signals to the banks in China to stave off lending this month by the PBOC, the market has found in today release of the Chinese growth of the fourth quarter by 10.7% y/y with inflation beating the market expectations of 1.7% coming at 1.9% a high price of this growth of this high operating economy which has grown by just 8.9% in the third quarter which dampened the capital spending outlook at this point pushing the greenback up across the broad.

The single currency has continued its owes this week after a new exacerbating from the budget deficit of Portugal this time which has risen to 8.6% to its growth rate while the European treaty calls for what's below 3%. In the early years of this decade, we have seen the penetration of this ratio of the Maastricht treaty by Germany which was a threat calling for worries even about the equivalence of the Euro zone countries financial situations treaty which was hurting the single currency but now and after the financial situation has aggravated because of the credit crisis,

The release of US labor report of December has disappointed the investors as losing another 85.000 jobs out of the farming sector was not expected after November losing just 11k in November which have been revised up to adding 4000 last Friday to make the release mixed to some extent. The market was prepared for losing just 20k in December after a wave of optimism could contain the market sentiment especially after the promising releases of US ISM manufacturing index which continued its creeping up to 55 in December pushing the investors' risk appetite up and the US leading equities market which shrugged off the disappointing data and could add to its previous gains. The Dow could close the week above 10600 this time and S&P 500 above 1140 at 1144.

The forex market is still trading in a mixed way on the current low volume because of the year ending holidays around the globe. The greenback could gain this month on the increased market speculations of a near coming tightening action from the Fed next year which can have a change of the central banks monetary easing policies after reaching these current massive low interest rate levels with the credit crisis impact on the economy which can make changes in the currencies market as well after the recent leading US improvement of November in the consuming and labor sectors which have been appreciated by the Fed's recent US assessment last week after its decision to keep the interest rate unchanged which has been read as a smoothing statement to this coming waited action.