In the US, Ben Bernanke, Federal Reserve Chairman, is about to speak in Orlando

The Purchasing Managers’ indices in the UK were generally better than expected in January, and an official recession now seems less likely. However, another round of QE by the contral bank seems inevitable. Despite stronger US growth, the pound has had a spectacular run, rising over 500 pips against the dollar since mid-January.

In the US, Trade Balance, value the imported and exported goods over the last month, is expected to further reduce from-43.5B on December down to -44.8B now.

The drop came after Britain’s deficit reached double digits in September and hit 10.2 billion. 9.8 was the original figure, now revised to the downside. The current improvement could help GDP for the fourth quarter.

In the US, Trade Balance, value the difference between exported and imported goods and services on the past month, expected to further reduce from -43.1B on November down to -43.5B now.

The housing sector is relatively stable: this was seen in another positive Construction PMI and another rise in house prices. On the other hand, manufacturing remains sluggish. We will get the last PMI figure and more housing data this week.

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.

The ongoing crisis in Europe, that focused on Italy but also touched France, has an impact also on New Zealand. Closer to home, China’s lower trade balance surplus also weighed on the pair.

In the US, Prelim University of Michigan (UoM) Consumer Sentiment, monthly survey to value the present and upcoming financial conditions, rise of 0.2 points is expected this month up to 61.1 points.

Britain enjoyed some nice growth in Q3, but fresh figures from October are not so good: The manufacturing sector is contracting once again, while construction is doing better and the services sector is struggling.