The New Zealand Dollar fell notably after the government reported that the Unemployment Rate rose to 6.8% in the fourth quarter, much higher than the 6.5% consensus estimate and the 6.4% in the third quarter. The New Zealand labor market has failed to recover from the global economic downturn, in sharp contrast to neighboring Australia where the employment landscape has steadily improved.

UK construction PMI returned to expansion territory in January after a severe weather-related drop in December. The pound has extended its gains against the dollar as a result with some eying Nov. 2010 highs around 1.6300…..

Construction spending in the United States fell by 2.5 percent, its biggest drop since July 2010, to its lowest level since July 2000.

The Institute of Supply Management’s index for manufacturing in the United States rose to 60.8 in January from 58.5 in December, outpacing the prerelease reading of 58.0.

The raft of data out of countries across Europe this morning shows the economic recovery is gaining traction across the region. The unemployment drop in Germany is certainly one of the most significant as it falls to lowest levels in almost 20 years…..