It’s a big data week in the US, but you have to wonder if it matters against the dark backdrop of Europe. In-fighting on the ECB, banking woes across the Continent, sovereign ratings woes. Add concerns that China may be slowing and the US data is almost an after-thought.
Assuming the US data holds up, hope will rise that we can avoid a double dip on a global scale. That will help the risk trade. Poor US data will compound fears of a double dip, boosting the dollar.