Today, the U.S. economy will still be under the microscope, the start of the day will be with the durable goods orders for the month of January, where the ever decreasing confidence seems to affect the sales of long lived assets, the expectations are for the durable goods orders to drop 4% from a gain of 5.2% in December, while excluding transportation orders probably dropped by 1.3% following a gain of 2.6%.

Later, our eyes will be turned to a new reading for the housing market, and today it will be the new home sales, a 13 years low is about to achieve as the sales are expected to drop 0.7% to 600,000 units, confirming that the housing market will keep declining in the first quarter and it will continue to drop, and the fed has to keep lowering rates as much as it takes to stop the housing slump.

Mr. Bernanke will testify today and tomorrow before the congress, he will have to report for the house the state of the U.S. economy that is clearly having huge problems, and he has to deliver proper solutions to handle it, they have to explain their plan to escape potential recession, and a probable stagflation.

The U.S. dollar is having enough problems now, and the current trend is undergoing, and it doesn’t look like that the dollar will be rescued soon, the Euro has passed the 1.50 barrier, and the British pound is about to cross the 2.000 barrier again, and with those figures the situation will keep going for a while opening the way for the currencies to achieve higher levels.