The rally in risk was despite a dreadful new home sales number out of the US. Sales collapsed more than -11% in January to a record low 309K annual run-rate (data going back to 1963). Some in the market attributed the drop to harsh winter weather conditions, mainly in the Northeast, but the reality is that the data this week have been less than constructive. With Bernanke now behind us (his Senate testimony tomorrow will likely be postponed due to more snow) the focus is on what the month-end flows will look like at the end of the week. Our in-house model suggests EUR buying and USD selling is in the offing as the US witnessed a large increase in equity market capitalization while Europe was down in size. While other factors can outweigh the portfolio rebalancing flows, this is definitely something to keep in mind as we get closer. However, our long-term view remains USD bullish and thus any setback here should be viewed as a buying opportunity.