After a week of uncertainty investors should learn this week where the economy is heading. Tuesday and Wednesday should be calm. Tomorrow worth attention will be the Pending Home Sales reports from the US housing market. As usual for this sector, the forecasts are not good. Investor who play on the Australian dollar should pay attention to the Australian Retail Sales publication (Tuesday) and the Trade Balance report (Wednesday).

The action will begin on Thursday. The Bank of England will set interest rates. Analysts expect no change from the current 5.50% but on their last meeting the MPC surprised the markets by a 25 basis points cut. Shortly after each vote, the MPC releases a statement that contains the outcome of their vote, a brief commentary of the economic conditions that effected their decision, and most importantly, clues regarding the outcome of future votes. 15 minutes later, the European Central Bank (ECB) will decide on the level of interest rates in the Euro zone. Will the ECB react to increasing inflation and hike interest rates? Analysts expect that rates will remain unchanged at 4.00%. Just right after, European Central Bank’s President, Jean-Claude Trichet, will hold a press conference in Frankfurt following the Governing Council's interest rate announcement.

Thursday will bring even more attractions. Federal Reserve’s Chairman Ben Bernanke will deliver a speech entitled "Financial Markets, the Economic Outlook, and Monetary Policy" at the Women in Housing and Finance and the Exchequer Club, Washington DC. Investor expect to hear something regarding the future monetary policy of the Fed, especially the decision about interest rates on the FOMC meeting in January.

On Friday, investors should pay attention to a couple of publications including UK’s Industrial Production, Canadian employment change and Trade Balance and the American Trade Balance.

No macroeconomic reports are expected to be published in Poland so local investors will need to follow the global markets.

Adam Narczewski