Cliff Wachtel's  Instablog

Part 2: Coming Week Market Movers

The following is Part 2 of our weekly review and preview strategy guide for traders and investors of all major asset classes via both traditional instruments and binary options, covering coming week's market movers and trade ramifications

With the IMF getting its desired bailout fund increase, this could be enough of a reason to give markets a boost early in the week as it could be enough of an excuse for a bout of EU optimism now that there's enough cash on hand to deal with Spain. As noted in Part 1, conservative estimates suggest a Spain bailout could total

The meeting is not expected to yield any change in Fed policy, but markets will nonetheless be sensitive to even minor hints of possible changes. Bernanke is expected to sound less optimistic than he did last month.

Still, the consensus is that there will be no new easing unless things get much worse for the US, especially because it's far from clear that QE has done more harm than good. Indeed, it's hard to see how lowering borrowing costs improves things when most of the US is still trying to reduce debt.

The expected dovishness could further pressure the USDCAD, because the BoC is expected to raise rates.

Earnings reports have one more week of influence. They tend to be influential for the first three weeks of reporting season, after which time the theme is set.

Both are more likely to yield anti-market results, if anything, and pressure the EUR.

Top events of the week include:

Monday

A big day for manufacturing PMIs. By themselves not dominant news, but if they all show the same theme they could indeed set market mood.

Australia: PPI - the RBA is already considering further easing, and that will become more likely if inflation remains a non-threat.

China: HSBC flash Mfg PMI

EU: French, German, EU Mfg PMIs

Tuesday

UK: Public sector net borrowing

All: G-7 Meeting - look for more spin control to calm markets about Spain and the rest of the GIIPS

US: New home sales, CB consumer confidence

Wednesday

UK: Preliminary GDP- expected to show a modest increase. The GBP has been on a tear recently, and this may signal profit taking time for the shorter term positions.

US: Durable Goods, FOMC press conference (see above)

Thursday

US: Pending home sales, weekly first time jobless claims

Friday

Japan: BoJ rate statement and press conference: further easing steps expected, good for stocks and other risk assets, bad for the JPY bulls.

US: Advanced GDP

Consult any good economic calendar, like that of forexfactory.com, for details

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DISCLOSURE /DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY, RESPONSIBILITY FOR ALL TRADING DECISIONS LIES SOLELY WITH THE READER. IF WE REALLY KNEW WHAT WOULD HAPPEN, WE WOULDN'T BE TELLING YOU FOR FREE, NOW WOULD WE?

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.