Last week mixed results were released amid an unexpected drop in Japan’s core machinery orders, with a 7.1% drop in December indicating the stagnating effect of the strong yen and the global slowdown. However consumer sentiment unexpectedly increased to 40 from 38.9 while expected to reach 38.6. Will Japan be able to hold off a deeper decline?

In the US, Elizabeth Duke, Federal Reserve Governor is due to speak in Virginia.

Last week, positive readings were registered in Japan with a rise to 92.9% in Leading Indicators, a smaller than predicted drop in the current account surplus reaching 0.48T and a rise in Economy Watchers Sentiment to 47 from 45 getting closer to the 50 point line. Will this positive trend continue?

In the US, Federal Budget Balance, measures the difference between government’s income and expenses over the past month, further reduce is expected from -98.5B on November down to -138.0B now.

Last week Japan’s core machinery orders dropped more than expected slipping 6.9% in October amid growing concern over the euro zone debt crisis and the strong yen. This bad reading adds to the recent declines in corporate spending indicating a general slowdown. Will Japan succeed to distance itself from the European debt crisis?

In the US, Unemployment Claims, important sign of overall financial health that measures the unemployment insurance filed on the last week, rise is expected from 397K up to 401K this week

Last week BOJ Governor Masaaki Shirakawa spoke about the necessity of world leaders to prevent EU debt crisis from generating another global recession and ensure market stability. Shirakawa was criticized in the meeting in Osaka for failing to lower the surging yen hindering Japan’s recovery. Will Japan succeed to depreciate the yen?

In the US, Federal Open Market Committee (FOMC) Meeting Minutes, full record of the latest FOMC’s meeting, the visions into the financial and monetarist conditions that prejudiced on where to set the interest rates.

Last week, the Tankan Manufacturing Index gained 2 points as predicted while the non- manufacturing index climbed by a mere 1 point unlike the 3 points predicted and Overnight Call Rate remained the lowest as expected. Nevertheless a positive growth  trend exists.

In the US, Richard Fisher, Federal Reserve Bank of Dallas President is due to deliver a speech in Dallas.