In the US, Daniel Tarullo, Federal Reserve Governor, is about to speak in Washington DC.

6 central banks coordinated to cut US dollar swaps by 50 basis points. This provides some relief for the troubled European banks, but doesn’t solve Italy’s big problem: high costs for debt. Many ideas are floating, but there’s only one player that is able to provide a game changing move: the ECB. Will it finally act?

In Canada, Corporate Profits is due to stay -4.9% similar to the last quarter.

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.

Apart from Germany,a bond sell off was seen in every European country. Will German bonds sell as well? Will the benchmark break? If this happens, the euro’s losses will accelerate. Last week Weekly jobless claims dropped to 388K indicating a gradual improvement in the US job market. Most other US figures were upbeat. These favorable figures give room for cautious optimism in light of the global financial turmoil. Will this improvement continue?

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

In the US, ISM Non-Manufacturing Purchasing Managers’ Index (PMI); measurement of the relative level of business conditions based on a monthly survey, slightly reduced from the last month to 51.3 points from 52.7 points.

Jackson Hole Symposium (Day 2), Financial Symposium in Jackson Hole Wyoming for central bankers, finance ministers, academics, and worldwide economic market participants.

Last week US inflation is still very present. CPI increased by 0.5% in July, well above expectations of 0.2% gain with core inflation rising by 0.2% in line with predictions indicating healthy market activity with signs of inflation slimming chances for a QE3 announcement in Jackson Hole. Will we see a stop to the slowdown in the US economy?

We’ve seen some risk averse moves in the past week: Bad US figures weakened EUR/USD, such as in the ADP release. But eventually, the hopes for Greece pushed the pair higher, as well as the broad weak picture for the US, seen in Non-Farm Payrolls.