Financial Options

The big action in the US this week is going to be in three reports - the Consumer Confidence Index Tuesday and reports on existing and new home sales Wednesday and Thursday. Consumer confidence is expected to improve slightly for a second month, but remains at low levels not seen for years. Forex traders will need to keep their eyes on other reports from the Conference Board this week, especially Thursday's release of the Euro Zone Leading Index. With German business confidence up less than expected according to Monday's Ifo report, the euro could be in for a battering this week. Add that to the geopolitical strains pushing investors to the dollar's safe haven and there's plenty of room for more dollar gains especially early in the week. Commodity traders will want to watch those reports as well, as the dollar strength is helping cap the recent runup in oil prices.

Aside from the sales reports, the Case-Shiller Housing Price Index is due out Tuesday for a solid, and likely volatile, week of housing market indicators. With inventories still at high levels, foreclosure pressures, credit still tight and buyers still bargain hunting, solid gains in sales are likely to be matched by at least moderately down price reports. Whichever way the reports go, mixed news is the very likely conclusion to housing market news this week.