Good morning,

The last week of January is a busy one, featuring 3 Rate decisions and preliminary GDP releases. The key reports this week are the first estimate of US Q4 GDP and the Case-Shiller House Price Index for November. The Leading Economic Index will be released on Monday by Japan Cabinet Office. Mark Carney, Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority will have a speech on Tuesday. Australia Westpac leading index, CPI, business condition, business Confidence, Germany Consumer Confidence, import prices, U.K. nationwide house prices, Swiss consumption indicator, France consumer confidence, Italy consumer confidence, business confidence, U.S. mortgage applications, new home sales, Fed Pace of MBS Purchase Program, Fed Pace of Treasury Purchase Program, Fed Interest Rate Decision and New Zealand RBNZ interest rate decision on Wednesday. US Durable Goods Orders (Thursday): Economists estimate orders fell 0.5% in December. The widening of Japan trade balance could spur the Bank of Japan to consider more aggressive monetary policy when it announces its latest interest-rate decision on Friday.

The S&P 500 saw its first weekly gain in a month this week, rising 1.07% during a holiday-shortened week that saw crude oil prices rebound after earlier dropping to a 12-year low under 28.00 per barrel earlier in the week. USD strength continues to be driven more by what is happening outside the US rather than what is happening in it. The Dow Jones Industrial Average increased 210.8 points or 1.33% to 16093.51 on Friday January 22 from 15882.68 in the previous trading session. Oil finally had a major rally after several weeks of declines.

The BoE explained that in November inflation fell short of expectations, mostly due to the decline in oil quotations, but not only. The Fed is telegraphing additional rate hikes throughout the year, and commodity prices are falling. In China, where 2015 saw the slowest rate of economic growth for a quarter of a century. Concerns about the health of the world largest economy are likely to move to center-stage this week, temporarily eclipsing investor worries over the slowdown in China and the plunging oil price. The US economy capped a strong year of jobs growth with stellar December data, demonstrating resilience amid slowing global growth, China turmoil, and the steep decline of the oil sector.