starting from the housing market, to the CPI, and the minutes of the last FOMC meeting.

We will start with the housing data, where we will be watching for two important indicators which are expected to remain around their lowest levels in about 25 years. Housing starts are expected to increase slightly to 1.010 million units up from its low at 1.006 million units in December, while building permits is expected to record another decline to 1.05 million units after 1.068 million, highlighting that the housing slump is not over yet despite all the cuts the fed made up till January.

At the same time, the U.S. department of labor will announce their reading on consumer prices for the month of January; the expectations are to see an increase of 0.3% after 0.2% in December, and a 4.2% increase for the YoY reading. Core prices are to increase 0.2% at the same pace it did in December, while markets expect a 2.4% increase in the yearly reading, which meets FOMC statements where they said inflation risks remained well anchored so far.

The two reports will basically show the effects of the rate cuts that took place till January on both the housing sector and on inflation rates. As we all know, the housing slump was the main reason behind all the problems we are having now in the economy, dragging down growth levels, and leading to an international credit crisis, and the main aim for the rate cuts is to deliver the stability of that sector. But up till now they are not doing their designated jobs, and that's why the feds will probably keep lowering rates.

As inflation is expected to remain well anchored despite the cut, there is room for the FOMC to reduce rates more, and that will be released today with minutes of the last FOMC meeting along with a record from the emergency cut. From there we will try to find some hints about the next movement in the upcoming meeting.

That’s all folks for today, let's wait and see what happens with these, and what is the effect that will take place in the markets, and the effect it's going to have on the interest rate outlook.