Last week ECB president Mario Draghi’s remark at the ECS press conference provided a loop hole to contribute to the Greek bailout, by suggesting to distribute profits from Greek bonds to Greece. Meantime Greece is in a vicious cycle while the austerity measures posed by the EU paralyze market activity lowering consumption which in turn produces less tax revenues to cover its growing debt. Will Draghi’s suggestion help the struggling nation? Let’s start:

In the US, Producer Price Index (PPI); primary sign of consumer inflation that value the producer’s price change of finished goods and services, deduction is expected from 0.3% on December down to 0.1%. Meanwhile no change is predicted in the Core PPI (not including food and energy) and 0.1% on this month as well.

British QE expansion is likely in February, and more and more QE means more money printing, and this eventually takes its toll in devaluing the currency.

Last week, the European Central Bank President Mario Draghi communicated calm and satisfaction with the central bank’s LTRO program saying it has successfully combated credit erosion. That move only provided temporary calm to the markets, until the massive downgrade by S&P for euro-zone countries and the collapse of talks between Greece and the banks. Also US data is beginning to worsen.

GBP/USD moved a bit higher, towards 1.5540, but the move is certainly limited.

In the US, Import Prices, value the prices for imported goods and services, affects the businesses and consumers inflation, about to rise up from -0.6% on November to 1.0% now.

Britain’s trade balance deficit fell to 7.6 billion pounds in October, which was significantly better than the  9.5 billion deficit  that was expected. This figure is bullish for the pound, which has been inching up against the dollar.

Last week Mario Draghi President of the European Central Bank lowered rates to 1.0% and announced new measures to aid the banks but made it clear that he opposes big bond buys meaning there will be no QE at this time. The ECB forecasts recession in 2012. Will these measures stop the “ticking bomb” situation in Europe? Let’s start:

GBP/USD reacts with a small drop and lost the 1.58 line it managed to climb above beforehand. The pair dropped to around 1.5750 during the Asian session. Resistance is at 1.5850. All in all, the moves are quite limited. The figures offset each other and another big event is awaited.

In the US, Consumer Price Index (CPI), value the consumer’s price change of goods and services, due to reduce by 0.3% this month, while the Core CPI (apart from food and energy) is expected to remain 0.1% similar to the last report.