German GDP (3Q F) (07:00 GMT; 02:00 EST)
                         (QoQ)           (YoY)
Consensus:        0.6%             2.8%
Previous:            0.9%             2.4%

Outlook:  Although economic growth is expected to slow on a quarter-over-quarter basis to 0.7 percent, the annual rate of GDP expansion is estimated to hit a six-year high of 2.8 percent. Investment likely remained the growth engine of the German economy, according to a recent Bundesbank report which also noted that the contribution of foreign trade was probably â�,��"rather modestâ�,� as imports increased. Meanwhile, builders probably boosted construction further in the third quarter, but at a slower pace than in the previous three months. However, consumer spending, which still lacks momentum despite a tighter labor market and buoyant consumer sentiment, adds downside risk to the GDP estimate.

Previous: Economic expansion in Germany picked up at the fastest pace in five years during the second quarter at a rate of 0.9 percent, bringing the annual rate up to 2.4 percent. The rise was better-than-expected after companies increased investment and hiring to meet foreign demand for their goods. The World Cup tournament in June and the prospect of a sales-tax increase in 2007 boosted consumer spending, while construction activity rebounded from the first quarter, when it was hampered by unusually cold weather. The acceleration in growth in Germany helped to strengthen Euro-zone expansion as a whole, leading to three 25 basis point hikes between June and November with another one expected in December, which would bring the benchmark to a five-year high of 3.50 percent.

Swiss Employment Level (3Q) (08:15 GMT; 03:15 EST)
Consensus:           0.6%
Previous:               0.4%

Outlook:  The Swiss employment level is estimated to grow 0.6 percent in the third quarter to 3.656 million. Strong demand for Swiss products has made manufacturers more profitable and, as a result, they have boosted output. In order to meet desired production levels, companies have hired on more workers. Swiss firms including Tages-Anzeiger and Sulzer AG have indicated that there is a shortage of skilled labor, such as engineers and technical specialist. However, with economic growth anticipated to cool amidst slowing exports, the labor market could loosen somewhat in coming quarters.

Previous: Swiss employment growth slowed slightly in the second quarter to 0.4 percent, after gaining 0.7 percent. Nevertheless, the gain was positive for the Swiss economy, as it brought the employment level up to 3.651 million. Swiss companies are hiring more workers as they increase production to meet booming demand from the Euro-zone and abroad. Switzerland was the picture of growth in the first half of the year, as Europe's eighth-largest economy expanded 3.2 percent for the year in the second quarter, the fastest pace in five years. Industrial companies, planning firms and builders also indicated that they expected to hire more workers in the coming three months, boding well for the labor market in coming months.

German IFO (NOV) (09:00 GMT; 04:00 EST)
                     (Business Climate)         (Expectations)
Consensus:               105.2                        98.8
Previous:                   105.3                        99.2

Outlook:  German business leaders are expected to turn sour on their outlook for the economy and the industry climate, undoing the first improvements in months in the previous release.  The modest drop expected in the climate figure to 105.2 comes as executives see energy prices bottoming out while foreign demand and the coming health of the domestic economy seem questionable.  Foreign growth offers one of the most tangible drawbacks amongst economic bears.  The US economy, one of the biggest consumers of German exports, slowed to a 1.6 percent pace of expansion in the third quarter, the slowest in three-and-a-half years.  More influential for the expectations component in November is the approach of yearâ�,��"�s end.  Typically a strong season for businesses as holiday spending is factored in, the coming VAT hike from 16 to 19 percent looms as a potential heavy burden for the economy.  However, before the fiscal year rolls over, there may be a few reasons to suspect modest improvement.  First, though crude prices seem to have found a bottom, the commodity is more than 30 percent off its highs.  Furthermore, Christmas spending may provide a hefty subsidy if consumer confidence offers a reliable outlook.  The GfK survey rose to its highest level in five-years in its November report as respondents revealed that they plan to up purchasing to take advantage of current tax levels. 

Previous: Business confidence unexpectedly rebounded for the first time in four months in October as an accelerating decline in energy prices boosted expectations for profit margins.  The IFOâ�,��"�s measurement of the current business climate rose 0.4 points to 105.3 over the period, guided specifically by improvements in wholesale trade and manufacturing activity.  Over the month, the biggest contribution to the more optimistic outlook rested with a 24 percent in the drop of crude oil prices, allowing for higher profit margins during production.  Another area of support for German businesses was the value determined by shareholders.  Germanyâ�,��"�s benchmark equities index, the DAX Index, has advanced nearly 15 percent in the past two months to a five-year high.  Such high investor confidence has translated into strong current business confidence, seen in the coincident component of the IFO report, which grew to its highest level since 1991.

New Zealand Trade Balance (OCT) (21:45 GMT; 16:45 EST)
Consensus:      -NZ$650.0M
Previous:         -NZ$587.0M

Outlook:  New Zealandâ�,��"�s physical trade action is expected to slip further into deficit in October as businesses report a drop in foreign demand and agricultural commodity prices slip.  What would be the sixth consecutive shortfall in the trade balance comes primarily from the lack of demand reported at factories.  The NBNZ survey of business outlooks reported a drop in its exports component the second lowest level this year.  Further facilitating predictions of a decline in export demand was the deceleration to a four-month low in the commodity price index.  Commodities account for an estimated 70 percent of total exports and drop in prices will the bottom line value of shipments abroad.  Perhaps helping to offset the price decline in commodities though was the level of demand.  Major trade partner Australia is in the throws of the worst drought in a century, facilitating demand from the continent and spurring orders elsewhere to fill in for the shortfall in Aussie exports.  When all is said and done, the real determinate of trade activity could fall to the spending habits of New Zealand citizens.  Spending on the island continues to look robust as the drop in energy prices in September led retail sales for the same period to jump 1.2 percent.  Policy officials will monitor the level of the deficit to gauge whether the growing imbalance will add to current economic woes. 

Previous: New Zealandâ�,��"�s trade balance deficit narrowed to NZ$587 million in September from NZ$961 the month before. The decrease in the short fall was largely achieved by a huge 20 percent jump in exports from the same month a year ago.  Amongst the number of shipments destined for sale outside the nationâ�,��"�s borders, heavily-weighted commodities were leading the pack.  Exports of dairy products grew 44 percent over the past twelve months while aluminum shipments rose 41 percent over the same period.  In fact, all of the top 10 export categories advanced during the month.  Another component of strong foreign sales, aside from rising demand, was a weakening of the local currency which made New Zealand goods much more competitive on the global market.  The kiwi eased 6 percent against the US dollar, 11 percent against the British pound and 10 percent against the euro.

Richard Lee is a Currency Strategist at FXCM.