German Consumer Price Index (MoM)(Dec P)
Consensus: 1.0%
Previous: -0.1%

Outlook:  German inflationary pressures are expected to rebound as higher energy costs, holiday shopping and homes sales drove consumer prices higher in the month of December.  The combination is building a consensus view that prices will sharply rebound by 1 percent in the monthly preliminary figure as sales of homes in smaller regions of German vaulted a whopping 71 percent higher in some cases.  Increased holiday shopping additionally combined with a rebound in energy costs as crude oil contracts rebounded on supply shortage speculation, taking the contract higher to above $63 a barrel.  The notion is likely to boost further speculation of higher interest rates heading into the new year, supportive of further Euro gains against the dollar.  Moreover, market expectations are bent on higher prices as the new VAT tax comes into play in the regionââ,¬â"¢s largest economy as money supply figures continue to purport an inflationary environment.  Money supply growth accelerated in the dozen euro nations, rising by 8.5 percent from a year earlier.

Previous:  Rising for the second straight month, German consumer prices increased to 1.5 percent on an annualized comparison according to the Federal Statistics Office in November.   Boosted by higher prices of vegetables and energy costs, consumer prices were supported and continued to boost speculation of further rate hikes in the Eurozone by the European Central Bank.  Already increasing rates six times in a year, policy makers continue to remain hawkish as wage growth and a newly enacted German tax are likely to bolster higher prices next year.  The largest economy in the Euro region is expected to add a VAT tax that will effectively add to the price that consumers pay on goods within the country, raising prices.  However, some premature concerns have also been voiced of the likelihood that consumption may dip as the tax will effectively minimize the income available to consumer, lowering growth.  Either way, central bankers continue to forecast inflation in coming years, with higher CPI readings ultimately being simple justification.

French Consumer Spending (MoM) (NOV) (6:50GMT; 2:50EST)
Consensus: 0.3%
Previous:     0.9%

Outlook:  The French National Institute for Statistics and Economic Studies is expected to show that consumer spending in France rose only by 0.3 percent in November, according to the median expectation of a Bloomberg survey of 27 economists. With the Christmas shopping season approaching some items like clothing sales are expected to rebound sharply after having drop both in September and October. In fact, Consumer spending accounts for about 15% of the French economy and consumers have sustained the economy growth as unemployment dropped to the lowest since October 2001. However, spending on manufactured goods, which accounts for around 27 percent of the total consumption, is expected to fall with lower car sales offsetting gains made on other sectors of the French economy.

Previous:  French consumer spending rose 0.9 percent in October, from a 2.5 percent drop in September, revised up by 0.2 percent, according to the INSEE. Expenditure in durables rose by 1%, and both car purchases and household consumption in equipment goods increased respectively by 1.1% and 0.9%. Household consumption in other manufactured goods rose by 0.6% after a drop of 1.2% in September. Consumption expenditure in textile and leather grew by 1.5% percent in October after having fall 9% in September.

US Durable Goods Orders (MoM)(NOV)(13:30 GMT; 8:30 EST)
Consensus:  1.3%
Previous:  -8.3%

Ex-Transportation
Consensus: 1.0%
Previous:  -1.7%

Outlook:  US durable goods are expected to rise by 1.3 percent in the month of November.  After experiencing an unusual and significantly large drop of 8.3 percent in orders during the month of October, it is natural to expect a rebound the following month.  Transportation orders as well as orders for computer and electronic products are predicted to rise, but the risk is still to the downside after the horrid Philadelphia Fed report released Thursday morning.  The October drop in durable goods contributed to the downward revision of third quarter GDP.  We would need to see a positive print for the weakness in orders to stop takin away from GDP growth. 

Previous:  US durable goods dropped by the largest amount in 6 years during the month of October.   A sharp 45 percent reduction in orders for Boeing airplanes was the primarily catalyst for the fall, but weaker demand was also seen for computers and communications equipment.  After having experienced a 198 percent increase in orders the prior month, Boeingââ,¬â"¢s slower sales growth is not necessarily a reflection of a struggling company.  Orders for computers and other related electronics fell by 26 percent while demand for communications equipment dropped by 17 percent. 

US Personal Income (MoM) (NOV) (13:30 GMT; 8:30 EST)
Consensus: 0.4%
Previous: 0.4%

Personal Spending
Consensus: 0.6%
Previous: 0.2%

Outlook: Analysts predict that US Personal Income growth stayed the same through November, while a natural retracement in spending will lead the purchase-based measure higher. After several consecutive months of solid income growth, it serves to reason that below-trend consumption should make a comeback as consumers have more money to spend. Indeed, if actual numbers line up with median estimates, it will be the first time since July that purchasing growth will have outstripped income changes. Markets will certainly look to Novemberââ,¬â"¢s data to catch a glimpse at early holiday spending for the worldââ,¬â"¢s largest economy.

Previous: Personal incomes grew by the smallest percentage in four months through October, but the above-consensus print was enough to elicit a brighter outlook for the US economy. Equally significant, Personal Spending rebounded from Septemberââ,¬â"¢s unexpected drop, albeit modestly, to post a 0.2 percent gain through the period. The atypical divergence between Personal Income and Spending growth pointed to potentially weak consumer demand, but macroeconomists were pleased to see that Americans boosted their savings rate for the second consecutive sampling period. As it relates to foreign exchange markets, traders hope that tomorrowââ,¬â"¢s print can improve on recently weak spending results, as November and December consumer purchases remain critical to overall US Retail growth.

John Kicklighter is a Currency Strategist at FXCM.