In the US, CB Consumer Confidence increased more than predicted to 64.5 in December from 55.2 in November indicating an elevated confidence among households. A further improvement to 68.2 is expected now.

Ben Bernake’s extended rate pledge and hints of QE3 certainly helped weaken the US dollar. In Canada, the leading index continued rising with a 0.8% gain in December after climbing 0.9% in the previous month suggesting positive growth. Retail sales gained 0.3% in October supporting predictions while Core sales topped expectations with 0.3% climb. Will the Canadian market continue its growth this week?

In the US, Unemployment Claims, weekly report that is important for monetary health, value new unemployment insurances over the last week, decrement is due from 381K down to 375K now.

Tensions around Iran’s military exercise in the straights of Hormuz keep oil prices from falling, and this supports the greenback. Mid-east violence could start in another region, between Syria, Lebanon and Israel. These themes will continue in 2012.

In the US, Automatic Data Processing, Inc. (ADP) Non-Farm Employment Change, measures the number of employed people over the last month (without government & farming industry), rise is expected from 110K on October up to 131K.

The crisis in Europe is definitely taking its toll. The failed German auction was the highlight of an eventful week. The loonie felt it through falling oil prices as well as the sweeping strength of the US dollar. In Canada, Retail sales edged up  in Canada during September, rising well above expectations gaining 1.0%. The strong growth occurred amid elevated automobile purchases overshadowing August 0.6% increase. Meanwhile, Core sales also grew by 0.5% above the 0.4% gain predicted indicating better market conditions. Will this trend continue?

In the US, Chicago Purchasing Managers’ Index (PMI); monthly managers in Chicago survey to value the business conditions for employment, new orders etc. is due to reduce down to 59.2 points from 60.4 points.

Last week, despite positive figures reflecting improvement in the Canadian economy, the BOC remains quite cautious. The last rate statement did not include any hints of rate hikes due to the high uncertainty in the global scene. Will the Canadian market escape the global financial turmoil?

In the US, Unemployment Claims, weekly measurement of the persons that filed for unemployment cover, reduces from 423K on the last week to 420K this time.

The lack of QE3 in Bernanke’s statement and especially the comment about downside risks to the economy weighed heavily on the loonie. This was exacerbated by the accompanying fall in oil prices.  Last week Inflation rates increased but retail sales contracted due to a reduced demand for automobile, Core retail sales remained flat indicating less activity in the market. Will this trend continue?