On Tuesday a bunch of important reports will be published. The GBP will certainly react to the CPI publication. This report will show how the British economy is doing (recently not so well) and maybe give another problem to the British Monetary Policy Council. The same day we expect important news from the United States. Important will be the retail sales report and the PPI publication. Later in the afternoon, Ben Bernanke is due to give the semiannual monetary policy testimony before the Senate Committee on Banking, Housing, and Urban Affairs in Washington DC. Not only the USD will be watched. Investors playing on the JPY are expecting the Bank of Japan interest rate statement (no change from the current 0.5%), the same as those betting on the CAD with the Bank of Canada interest rate statement (no change expected from the current 3.0%). Also, in the Eurozone, the German ZEW Economic Sentiment report will be published.

On Wednesday we continue with inflation reports. The Euro zone will publish its CPI report along with the U.S. Investors need to pay attention also to the U.S industrial production and the second day of Bernanke’s testimony. At the end of the FOMC meeting minutes will be published, which are a detailed record of the committee's interest rate meeting held about two weeks earlier.

On Thursday, we will get news from the U.S housing markets with the Building Permits and Housing Starts report. Worth attention also will be the unemployment claims and the Philadelphia Manufacturing Fed Index.

On Friday investors will feel like on a vacation. Bank of Japan’s Governor Shirakawa is expected to speak. Also the Euro zone trade balance will be published.

The upcoming week is rich in inflation reports from the biggest economies in the world. They will be followed very carefully since those will decide on the future monetary policy of the ECB and the Fed.

Adam Narczewski