Japanese Eco Watchers Survey (DEC) (05:00 GMT; 00:00 EDT)
                       (Current)               (Outlook)
Consensus:         49.5                      n/a
Previous:             48.9                      49.7

Outlook: After dropping back below the 50 level for the first time since July, the Eco-Watchers current assessment is expected to edge slightly higher, though may continue to signal pessimism.  At face value, the Japanese have little cause for concern, as low unemployment should placate consumers in a tepid inflationary environment. Businesses appear to be appeased as well, as capital expenditures jumped 12 percent in the third quarter. Even investment plans are weathering the end of extraordinarily inexpensive lending rate, with bank lending likely to be upwards of 1.3 percent. However, with continued weakness in the retail sector, and with households responsible for most of the previous monthâ�,��"�s decline, pessimistic consumer sentiment could easily push the number towards the downside.

Previous:  The November reading of the Eco Watchers â�,��"man-in-the-streetâ�,� survey slipped to 48.9 from 50.8 in October, marking the second consecutive month of declines. Additionally, the November figure marked the first time in four months that the figure fell below the 50 level, indicating that the Japanese are more pessimistic than optimistic about the economy. A breakdown of the data showed that households felt significantly more negative about the economy, as consumers worried more about conditions in the retail, services, and housing sectors. The only area that households proved to have a more positive view of was food. Meanwhile, business opinion of the economy also plunged below the 50 level with the help of increasingly negative manufacturersâ�,��"� and non-manufacturersâ�,��"� sentiment. Additionally, employment current conditions proved to remain resilient above the 50 level, however, even that index plummeted to 56.0 from 60.6.

US Import Price Index (DEC) (13:30 GMT; 08:30 EDT)
                          (MoM)                    (YoY)
Consensus:         0.6%                       n/a
Previous:             0.2%                      1.2%

Outlook: The first of the three key inflation indicators from the US, the Import Price Index is expected to turn Federal Reserve board membersâ�,��"� heads. Economists have provided a consensus for a 0.6 percent increase in the monthly gauge, though there is no figure offered for the more imperative annual measurement. Despite the hawkish expectations though, the peripheral data available for analysis provides a more mixed outlook. Factories around the nation, which are major consumers of imported natural resources and equipment, consistently reported reduced costs. The nationwide ISMâ�,��"�s Prices Paid component slid to 47.5 from 53.5.  While this represented only a two month low, it is only half a point from recent historical lows.  Reports from the most industrial-heavy regions like the Empire, Philly Fed and Chicago PMI, on the other hand, were printing actual lows for the month. Alternatively, a few props may overcome manufacturersâ�,��"� records. Crude oil averaged more than $60 per barrel in December while strong auto sales suggest incentives may have been taken off the table and prices raised.  If the import number logs a strong number, inflation hawks will act quickly to revise their CPI and PPI numbers higher.

Previous:  The US imported little inflation in November, though the 0.2 percent pick up from the previous period was the first positive move in three months. In both October and September, the monthly measurements reported a sizable 2.3 percent and 2.2 percent contraction respectively. Each of these marked the biggest one-month drop in price growth since records began in 1989. Despite the severity of these previous reads and the modest move in November, most of the downward pressure was isolated in the energy sector. Petroleum products were 10.1 percent cheaper in October. In the most recent month, the same group only lost 1.6 percent, though, as the biggest jump in natural gas in two years steadied the ship. Aside from crude and its sister products though, inflation was (and has been) relatively tame.  Excluding all fuels, the import index printed a modest 0.1 percent increase. This stripped down look at the gauge offered the Fed more than enough reason to hold on its rate policy as members wait for other inflation gauges to cool and the economy to recovery.

US Advanced Retail Sales (DEC) (13:30 GMT; 08:30 EDT)
                        (Sales)                   (Less Autos)
Consensus:         0.7%                       0.6%
Previous:             1.0%                       1.1%

Outlook: Retailers are expected to have seen sales rise 0.7 percent in December as the American consumer looks to pick up the slack in the economy. Expectations for the second monthly advance come from a number of sources from both the consumer and producer sides of the equation. Businesses may offer a clue to retail activity through the ISMâ�,��"�s surveys. The service gauge, typically working right with the consumer, actually reported a modest decline in new orders. On the other hand, the groupâ�,��"�s factory equivalent reported a pick up in orders further up the supply chain. Whatâ�,��"�s more, a third quarter report of profit at large retail corporations printed a 4.0 percent increase in after tax take home.  From the consumers, the numbers were more optimistic. Strong employment and wage indicators suggest Americans had the capital to increase their discretionary spending. Unemployment held near a five-and-a-half year low 4.5 percent, while annual wage growth was pegged at a six-year high 4.2 percent. Suggesting Americanâ�,��"�s took advantage of the profitable conditions, the Conference Boardâ�,��"�s confidence indicator jumped to an 8-month high. Though the sales forecasts are lower than Novemberâ�,��"�s prints, a second consecutive rise would be a convincing argument for the Fed to defer any possible rate hike.

Previous:  Strong November retail sales offered a strong start to the holiday season and provided evidence that consumer spending (accounting for more than two-thirds of the economy) would weather slumps in both the housing and manufacturing sectors. The value of purchases rose 1.0 percent for the month, the biggest increase since July; while the statistic excluding autoâ�,��"�s marked the fastest pace of growth since the open of the year with a 1.1 percent rise. Looking to the categorical breakdown in the sales report, the improvement was broad, with only furniture stores marking a modest drop. Among the increases, there were a few influential standouts. Electronics sales surged 4.6 percent as gift buying picked up along with sales.  Elsewhere, building material purchases picked up 1.8 percent while filling stations posted their first increase in receipts in four months.

John Kicklighter is a Currency Strategist at FXCM.