In the US, Richmond Manufacturing Index, Manufacturer’s Monthly Survey to rate business conditions such as shipments, new orders etc., rise that shows condition improvements by 3 points up to 6 points this month.

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.

The current coalition government has vowed to bring down the high debt pile that the UK has. GBP/USD is unchanged at around 1.5725.

In the US, Existing Home Sales, monthly report to value the inhabited houses that were sold on the last month (the previous month (not including new building), rise from 4.97M on November up to 5.04M is predicted 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, Federal Open Market Committee (FOMC) Meeting Minutes, full record of the FOMC’s latest meeting that provides financial conditions visions on interest rates.

British inflation dropped to 5%, still far above the official target, but what’s really worrying the central bank is the high unemployment, which will eventually lead prices to fall. We’ll get to hear more from the BOE in the meeting minutes.

In the US, Narayana Kocherlakota, Federal Reserve Bank of Minneapolis President, is about to speak in Minneapolis.

While the rise in jobless claims was smaller than expected, the unemployment situation remains very worrying in Britain. Also manufacturing continues to slump. A point of light was a smaller trade balance deficit.

While only one member voted for expanding the QE program right now, this option was seriously discussed by other members as well. Adam Posen might not remain alone next month. When will QE2 in Britain be realized?