1. UK BRC Retail Sales Monitor
2. Swiss Unemployment Rate
3. German Factory Orders
4. Bank of Canada Rate Decision
5. Reserve Bank of Australia Rate Decision

BRC Retail Sales Monitor (FEB) (0:01 GMT, 19:01 EST)
Consensus: N/A
Previous: 3.4%

Consensus: No official estimates have been released on how the British Retail Consortium's (BRC) sales monitor will perform for the month of February.  However, given February's drop in consumer confidence according to the GfK index, it is likely that growth in retail sales will be meager at best.  British consumers' willingness to purchase durable goods has been waning, which will have negative effect on sales growth. While spending figures do not indicate that the British economy will receive a push from consumer consumption any time soon, it appears that the Bank of England is unfazed by such pessimism.  Ordinarily, the central bank would cut interest rates to spur some sort of spending momentum.  However, it is becoming increasingly likely that the BoE will leave rates unchanged in March on confidence that growth in the service and construction sectors will more than make up for weak spending. 

Previous: In January, member-stores of the BRC saw a 3.4% increase in total sales from the same time a year ago.  This was a considerably slower rate of increase than the previous month when total sales grew by 4.1%.  Sales growth in the same store from year to year was even weaker, showing a mere 0.2% gain, which is the slowest rate of sales growth the BRC has registered since its inception 11 years ago.  Much of the drop in sales growth is attributed to shoppers' disillusionment after holiday season clearance sales came to an end.  Food, clothing, and footwear purchases all declined from December.  The bulk of sales in home and leisure goods came only as a result of heavy retailer discounting.  Weak consumer expenditures in January are a continuation of last year's trend when spending became a drag on the economy, which dawdled along at its slowest pace in 13 years.

Swiss Unemployment Rate (FEB) (6:45 GMT, 1:45 EST)
Consensus: 3.8%
Previous: 3.9%

Consensus: For a second straight month, unemployment in Switzerland adjusted for seasonal swings is expected to register at 3.6%.  Historically, this figure has stood considerably higher at 3.9%.  As the Swiss economy continues to grow to meet massive foreign demand, sustained increases in unemployment could spur inflationary issues.  The Swiss National Bank has already raised interest rates once in recent months to combat such pressure.  However, it appears that the Bank may have to continue tightening its policy to avoid inflation caused by employment growth in the face of economic expansion.  Surveys conducted by recruitment agencies have revealed that nearly half of Swiss firms have vacancies waiting to be filled.  The information technology sector along with the construction and catering industries face particular labor shortages.  As more and more Swiss people are employed to fill these vacancies, economists predict unemployment levels to fall to as low as 3.4% this year. 

Previous: In January, the Swiss unemployment rate stood at 3.9%.  On a seasonally adjusted basis, this was a new low of 3.6%.  For the majority of last year, the Swiss jobless rate on a seasonally adjusted basis consistently came in at a tight range from 3.8% to 3.9%.  Without adding large numbers of jobs, Swiss managers were able to increase production through higher levels of utilization.  As a result, little inflationary pressure was created by the labor market.  This began to change towards the end of the year, however.  In order to sustain expansion, Swiss businesses began hiring more and more workers.  Recognizing that the nation's economy was beginning to show signs of growth capable of pushing capacity to its edge, the Swiss National Bank decided to raise interest rates 25-basis points in December. 

German Factory Orders (MoM)(Jan) (11:00 GMT; 6:00 EST)
Consensus: 1.3%
Previous: -1.6%

Outlook:   German factory orders are expected to rebound from last month's dip, continuing along the upward trend seen in the past few months.  Recent Euro-region manufacturing data revealed expansion at the fastest pace in 19 months, primarily led by increased exports throughout the economy.  Meanwhile, plant and machinery orders accelerated 25 percent in January, primarily from a 27 percent increase in domestic demand.  The increase in domestic demand may ease economists' concerns of Germany's economic growth being overly dependent on foreign demand.  Subsequently, the releases support current expectations of a 1.3 percent pickup in factory orders.  Separately, investors have elevated their expectations of interest rate hikes up to 3 percent by September, as economic reports continue to demonstrate growth in Europe.

Previous:  German manufacturing orders dropped in December for the first time in four months to -1.6 percent on decreased overseas demand.  Economists see this as a mild hiccup on an upward trend as exports and orders have seen strong gains in 2005 as the Euro declined 13 percent against the greenback.  Domestic demand remained strong despite higher oil prices.  Overall, businesses have been increasing loans to build up inventories and expand investments, a positive indication that factory orders will rebound next month and continue along its historical pace.  Some speculators placed bets that this release will be the first negative indication of economic growth in a chain, which may lead the central bank to reduce interest rate hikes down to a mere two times this year.

Bank of Canada Rate Decision (14:00 GMT, 9:00 EST)
Consensus: 3.75%
Previous: 3.50%

Outlook:  Raising interest rates for the fourth time in January, central bankers look to continue attempts in curbing inflationary pressures as the economy continues to pickup pace.  With energy exports rising in valuation, leading to a widened merchandise trade surplus, and strong housing and consumer sectors, the ninth largest economy looks ready to meet estimates of a 3 percent annualized rate of growth in 2006.  As a result, inflationary pressures are sure to loom as higher rates of output usually lend to price increases.  What has been notably surprising is the rate at which price increases are occurring.  Core figures, excluding the volatile 8 components, such as gasoline and food, rose only 1.6 percent in the month of December according to Statistics Canada.  Below the benchmark 2 percent target set by the central bank, the figure is suggestive that inflation is rather thin, lending to no justification for the current tightening bias.  However, with the country operating at full capacity, inflationary pressures may simply be lagging current capacity lending to a preemptive concern.  With futures trading pricing in a definitive tick higher, the near term remains bullish for the loonie as the underlying spot remains hovering 14-year lows.

Reserve Bank of Australia Rate Decision (22:30 GMT; 17:30 EST)
Consensus: 5.50%
Previous: 5.50%

Outlook:  Governor Ian Macfarlane, of the Reserve Bank of Australia, is expected to keep interest rates unchanged for the 12th straight month tomorrow as inflation has calmed in line with plateauing growth.  Yesterday's TD securities inflation report revealed that prices rose 2.8 percent from the previous year, well within the central bank's 2 percent to 3 percent target range.  Price growth slowed dramatically from the previous month as energy prices contracted and furniture and food costs dropped.  Wage inflation seems to be contained as jobs are being acquired at a reduced pace.  Consumer spending growth, which constitutes 60 percent of the country's economy, has dropped to the lowest amount since 2001.  The once booming housing market continues to decline as building approvals fell to -1.9 percent month over month, lowering demand for construction material and furnishings.  In addition, increased imports and lowered exports widened the trade balance to -A$2690M, the largest shortfall on record.  Although Macfarlane has commented that rates are more likely to increase than decrease, recent data suggests that in the short term borrowing costs should remain at 5.50 percent.

Richard Lee is a Currency Strategist at FXCM.