Major currency action is mixed, with the euro slightly lower even as other currencies like pound sterling and the Australian dollar are higher.  Risk is still being maintained during the session.  However, it seems as though further speculation over Greek talks and dour economic data are leading the Euro lower – by as much as 0.5%.  With summit results still pending and traders eyeing the dearth of any real developments on Greece/Portugal, current conditions are likely to persist heading into the afternoon trade.

1.  German retail sales disappointed, falling by 1.4% on the month – compared to expectations of a 0.9% rise.  The decline was seen mostly as a result of pessimism stemming from the current European financial crisis.

2.  US Consumer confidence was slightly weaker than December’s, lending some support to a continual slowdown in the US economy.  According to the Conference Board’s report, the consumer index dropped to a reading of 61.1 from a 64.8 in the previous month.

3.  According to the Institute for Supply Management, manufacturing activity fell in Chicago for the month of January.  Expected to fall to 61.5, the index dropped to 60.2 – below December’s 62.2.  The report went on to hit its second straight decline and the lowest in almost 5 months.

4.  Canadian growth was nonexistent in the month of November, lending to speculation that fourth quarter expansion for the economy was less than spectacular.  For the record, GDP for Canada rose by 0.1%, lower than the anticipated 0.2% climb.  Declines in oil production led the national growth rate lower according to Statistics Canada.

5.  Eurozone unemployment hit a record high of 10.4% in the month of December.  The gains in unemployment were led by soaring regional unemployment in Spain – of 23%.

6.  According to the Congressional Budget Office, the national deficit is likely to be trimmed to $1.1 trillion, compared with last year’s $1.3 trillion shortfall.  Officials noted higher tax revenue and cutbacks to government spending as being main proponents of the improvement.