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Forex pairs in this Article » EUR/USD (Barcelona) - The German DAX 30 (-0.22%), the French CAC 40 (-0.16%), the Italian FTSE MIB (-1.98%), and the Spanish IBEX 35 (-0.11%) rally drown as the EMU January confidence report improvement didn't meet expectations and the EURUSD rallies past 1.3500. European equity indexes are also eyeing the upcoming events on the other side of the Atlantic.

The German 30-year debt auction found an average yield of 2.45% for the ¬1.637B sold out of a ¬2B target. The previous yield for such maturity was of 2.34%.

EMU January consumer confidence improved from -26.3 to -23.9 as expected, industrial confidence rose from -14.2 (revised from -14.4) to -13.9 (consensus of -13.5), business climate rose from -1.11 (revised from -1.12) to -1.09 (consensus of -1.00). The Economic Sentiment Indicator beat expectations by rising from 87.8 to 89.2 (consensus of 88.2).

Futures for the American S&P 500, Nasdaq 100 and Dow Jones are mostly flat ahead of the NY session and widely expected data, including ADP employment, US GDP and the FOMC decision.

The widely expected ADP employment report is due at 13:15 GMT. "There is market expectation of 165K in January, closer to the actual 168K gain in private payrolls positions in December (according to the BLS nonfarm report) than the 215K ADP reading in December", wrote TD Securities analysts. Also today are the publication of US GDP and the FOMC meeting decisions.

In regard to the US GDP, Commerzbank analyst Lutz Karpowitz is pessimistic. "After a growth rate of 3.1% (annualized rate) in the third quarter, we expect very subdued figures. The consensus expects growth of 1.1% (annualized) and our economists are even more pessimistic (+0.8%).

WTI crude oil trades at $97.98 (+0.38%) and Gold rises to $1665.367 (+0.12%).
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