Quiet start to the trading week ahead of open bell Monday 02.08.2010
US Index Futures are just a little bearish as we move towards the open bell this morning. The data calendar for the week is quiet until Wednesday morning when the Bank of England will release their inflation report. We do have earnings this week, and after last year, everything seems to look better by comparison, so this could encourage some bullishness in the equity markets that might create a pull back against the recent USD Strength, but watch for the breakouts from the narrow ranges established overnight.
The G7 conference concluded with an agreement to keep stimulus in the markets for now, and the Euro zone was given the go ahead to work towards resolution of financial crisis in Greece, not to overlook housing in Spain and other challenges in Portugal. The market reaction to all the goings on at the G7, not much of anything, which is better than having the bears run wild had exit strategies from stimulus been more vigorously discussed.
Watch the equity markets for the next couple of days for clues on Forex trends.