It remained choppy throughout the London session as markets look to Fed Chairman Bernanke's semi-annual testimony to Congress later today. The bleak assessment he will likely deliver should be priced in already, but the question and answer session that follows could provide for some volatile price action in risk trades.

European bourses followed US shares lower overnight and are down about -1% on average. US stocks futures are bid though as yesterday's close – the worst levels since 1997 – likely has the bargain hunters out in full force. With a bleak assessment from Bernanke expected coupled with another potentially disappointing confidence report, we would be very surprised if gains were sustained.

In FX land it was a mixed picture. EUR/USD rose a modest 30 pips in London trading and was sitting near 1.2770/80 just ahead of the NY start. USD/JPY jumped 50 pips and added to healthy overnight gains into the 95.80/90 area. Continued deterioration in the Japanese economy looks to have investors second guessing the supposed safe haven status of JPY.
EUR/JPY jumped nearly 100 points and was just above 122.50 this morning.

Upcoming Economic Data Releases (NY Session) prev est

  • 2/24 14:00 GMT US S&P/CaseShiller Home Price Ind DEC 154.59 - -

  • 2/24 14:00 GMT US S&P/CS Composite-20 YoY DEC -18.18% -18.30%

  • 2/24 15:00 GMT US Consumer Confidence FEB 37.7 36

  • 2/24 15:00 GMT US House Price Index MoM DEC -1.80% - -

  • 2/24 15:00 GMT US Richmond Fed Manufact. Index FEB -49 -46

  • 2/24 15:00 GMT US Bernanke Report on Economy & Fed Policy

  • 2/24 15:00 GMT US House Price Purchase Index QoQ 4Q -1.80% -2.00%

  • 2/24 16:30 GMT US Fed's Fisher Speaks on Financial Crisis

  • 2/24 21:45 GMT NZ RBNZ 2yr Inflation Expectation 1Q 2.70% - -

  • 2/24 22:00 GMT US ABC Consumer Confidence 22-Feb -49 - -