World Economic Forum (WEF) Annual Meetings – Day 2, this time is held in Davos for Bankers, Political, trade & finance Ministers and Commercial leaders from around 90 countries. Can influent market volatility.

Unemployment in the UK remains high at 8.4%, making an economic recovery difficult. With a drop in inflation reported last week, the likelihood of the Bank of England expanding its QE program in the upcoming meeting in February are on the rise.

In the US, Building Permits the annualized amount of residential permits released in October was well beyond predictions reaching 650,000 after 590,000 in the prior month. A small drop to 630,000 is expected now.

The eurozone crisis and the global slowdown continue to batter Britain’s weak economy. The Treasury is forecasting that growth in 2011 will be a weak 1.1%, well down from the 2% projection at the beginning of the year. There is a strong chance that the economy will dip into a recession in early 2012. The economic indicators do not paint a pretty picture. Consumer confidence is very low, unemployment is high, at 8.3%, and keys sectors such as retail and manufacturing continue to struggle.

In the US, New Home Sales, monthly indicator to value the number sold households, 313K is likely with no change from the previous month.

British bonds did enjoy the failed German bond auction, but this wasn’t enough to lift the pound. And while Q3 GDP was reaffirmed at 0.5%, Q4 looks very worrying. We will get fresh data about November now.

In the US, Unemployment Claims, weekly report to value the unemployment that filed for insurance, is about to rise by 1K up to 404K this week.

Headline inflation pierced the 5% mark. In the current environment, this only means more trouble for Britain, as tightening monetary policy is off the cards, especially after the QE2 decision.

In the US, The Conference Board (CB) Consumer Confidence, monthly survey to rate the level of present and forthcoming monetary conditions, small rise from 44.5 points on August to 46.4 points is expected.

Britain is getting closer to another round of QE, perhaps as early as next month. This is what was seen in the meeting minutes, and it hurt the pound. On the same day, Ben Bernanke didn’t provide any hints whatsoever for QE3 and settled for Operation Twist. This was a huge blow for the pound.