We have a variety of economic reports, that although interesting, are not market movers. The market was cheered by a report which said US home sale prices were down only 13.3% from last year, better than anticipated. So much for the good news. Next the consumer conference board reported that their reading had slipped from the anticipated 57 and the previous 54.5 level, down to 53.1. The balance of the week will provide a lot of numbers including non farm pay roll and the monthly unemployment rate. It is likely that some of those reports will give us some volatility.

Of more importance to the USD has been the chatter of Central Bankers, and various finance ministers. The Euro central banker’s Trichet and Central Bank member Nowatny are both praising the merits of a strong dollar. Japan’s new Finance Minister Fujii daily comments about the merits of a strong yen have abated, and a special currency adviser Gyohten is now hailing the merits of a stable and strong dollar, to be used a a reserve currency for years to come. Finally a Russian Central Banker claims they will keep 30% of their currency reserves in dollars, and favors a stable dollar. Did the G20 meetings result in a group secretly assigned the task of the dollar’s defense?

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