23.02.2009

Key data and events to watch this week would be from the US. Tuesday starts it off with consumer confidence and multiple home price reports. Wednesday has existing home sales and the weekly oil inventory numbers, which have seen contributing to oil volatility lately. Thursday has Durable goods orders, initial jobless claims and new home sales . Friday rounds out the week with GDP, the Chicago PMI and University of Michigan consumer sentiment. Fed Chairman Bernanke's semi-annual testimony before the Senate is on Tuesday and the House on Wednesday which might be watched by the markets. Europe also sizzles with numbers this week with French consumer confidence, French Housing starts and German IFO surveys. Pretty light in the UK, which probably is a good thing, considering what the Pound has had to face in the last few weeks with a string of bad numbers. Japan has Bank of Japan minutes on Monday and trade balance report on Tuesday. With the Yen making new highs, it looks like more a case of unwinding of carry trade as the world interest rates converge instead of Yen as a safe haven as being reported by many. How can Yen be a safe haven when Japan has huge debts on its balance sheet and is rated as AA by two of the three rating agencies that count. With US set to pass the stimulus, we might see return of some risk appetite in the near weeks. With the global stocks meltdown, Gold has taken the status of second reserve currency. Coupled with the fact that the demand for physical gold is also very high, we might see further strengthening of Gold.