A full docket of data, including U.S. consumer confidence, durable goods, new and existing home sales and PCE, will be released during the shortened trading week. Meanwhile in Canada, markets will receive retail sales. However, George Androulidakis, director of FX trading at the National Bank of Canada, said most of the focus will be on the banking industry as Citigroup continues to deal with financial problems.

"Financials haven't been the main focus for the last few weeks but they are back," he said.

"I think over the weekend people will be looking closely at the financials and if a solution can be worked out for Citigroup than I think markets will be okay," he added. "I don't think the government will let Citigroup fail. We would have the same problems that we did when they let Lehman fail."

Michael Cheah, fund manager at AIG SunAmerica, said the bond market is definitely benefiting from the general fear, which is a trend he expects will continue into next week and for at least the end of the year.

Guy LeBas, fixed income strategist from Janney Montgomery Scott, said the recent gains in the Treasury market were driven by deflationary fears. As for next weekm he said people are going to use the holiday as a chance to take a break.

"It's the first time you can justify taking a couple of days of and I think people are going to take advantage of that and flows are going to be anemic," he said.

Looking at the trend, he said there is still room for 10-year yields to fall. However, he added the market remains extremely volatile in the short term.

"I think 3.00% is going to be a tough psychological level for the 10-year," he said. "It has become quantitatively impossible to model an economic fair value for the two-year. There is no fundamental basis to tell where the two-year note is going to go from here. It's not a traders market. It's an investor's market; someone who can buy something and hold it for a few months."

Looking at the currency markets, Androulidakis agrees that he expects to see a quiet trading environment as people limit their risks ahead of the holiday. However, he added that liquidity will be a problem and will push the markets.

"I think most people will be hesitant to hold any positions ahead of Thanksgiving," he said. "Less liquidity is going to be a problem and add to the volatility."

Jimmy Tintle, futures broker at Transworld Futures, said he could see a modest recovery in S&Ps next week, but any bounce would see viewed as a short-term move and markets will continue to test new lows.

"I think 800 in the S&P is going to be the new resistance level in this down trend," he said.

All times in EST

Monday:

The week starts with the release of U.S. existing homes sales for October, which are expected to fall 3.5% following September's rise of 5.5%. Economists are forecasting that 5,000,000 homes were sold during the month, which is down September's sales of 5,180,000.

10:00 US Existing Home Sales October Exp: 5.00M Prior: 5.18M

10:00 US Existing Home Sales (M/M) October Exp: -3.5% Prior: +5.5%

11:30 US Treasury to Sell $28B 3-Month Bills

11:30 US Treasury to Sell $28B 6-Month Bills

13:00 US Treasury to Sell $36B 2-Year Notes

Tuesday:

In this shortened trading week, Tuesday will be a busy day with Canadian retail sales, U.S. third-quarter GDP and consumer confidence.

Canadian retail sales for September are expected to rise 0.3% following August's decline of 0.3%. Core sales, excluding autos, for the month are expected to rise 0.2% following a previous 0.3% decline.

Markets will receive the second print of U.S. GDP for the third quarter, which is expected to fall 0.5% from the previous reading of -0.3%.

Economists are expecting a slight recovery in U.S. consumer confidence for November. The consensus is calling for a level of 38.8 up from October's level of 38.0.

8:30 CA Retail Sales (M/M) September Exp: +0.3% Prior: -0.3%

8:30 CA Retail Sales Less Autos (M/M) September Exp: +0.2% Prior: -0.3%

8:30 US GDP (Q/Q) Annualized Q3 Preliminary Exp: -0.5% Prior: -0.3%

8:30 US Personal Consumption Q3 Preliminary Exp: 3.5 Prior: -3.1%

8:30 US GDP Price Index Q3 Preliminary Exp: +4.2% Prior: +4.2%

8:30 US Core PCE (Q/Q) Q3 Preliminary Exp: +2.9% Prior: +2.9%

9:00 US S&P/CaseShiller Home Price Index September 164.6

9:00 US S&P/CaseShiller Composite-20 (Y/Y) September -16.9% Prior: -16.6%

9:00 US S&P/CaseShiller US Home Price Index (Q/Q) Q3 Prior: 155.3

9:00 US S&P/CaseShiller US Housing Price Index (Y/Y) Q3 Exp: 17.1 Prior: -15.4%

10:00 US Consumer Confidence November Exp: 38.8 Prior: 38.0

10:00 US Richmond Fed Manufacturing Index November Exp: -27 Prior: -26

10:00 US House Price Index (M/M) September Exp: 0.8 Prior: -0.6%

10:00 US House Price Purchase Index (Q/Q) Q3 Prior: -1.4%

13:00 US Treasury to Sell 4-Week Bills

13:00 US Treasury to Sell $26B 5-Year Notes

17:00 US ABC Consumer Confidence Prior: -52

Wednesday:

It's another busy day with the release of U.S. personal income and spending, new home sales, durable goods and weekly jobless claims.

U.S. durable goods are expected to fall 2.6% in October following September's revised increase of 0.9%. Core durable goods, excluding transportation, are expected to fall 1.5% following the previous revised decline of 1.0%.

U.S. personal income for October is expected to rise 0.1% following September's rise of 0.2% while personal spending is expected to continue to decrease with a decline of 1.0% in October following a 0.3% loss in September. Looking at inflation with the core PCE, economists are forecasting a flat monthly reading following September's rise of 0.2%.

Economists are expecting more bad news in the U.S. housing market with October's new homes sales report. October's sales are expected to be down 4.5% following September's gain of 2.7%. The consensus is calling for 443,000 new homes to be sold, which is down from September's sales of 464,000.

7:00 US MBA Mortgage Applications Prior: -6.2%

8:30 US Durable Goods Orders October Exp: -2.6% Prior: +0.8% Revised: +0.9%

8:30 US Durables Ex Transportation October Exp: -1.5% Prior: -1.1% Revised: -1.0%

8:30 US Personal Income October Exp: +0.1% Prior: +0.2%

8:30 US Personal Spending October Exp: -1.0% Prior: -0.3%

8:30 US PCE Core (Y/Y) October Exp: +2.2% Prior: +2.4%

8:30 US PCE Core (M/M) October Exp: +0.0% Prior: +0.2%

8:30 US PCE Deflator (Y/Y) October Exp: +3.3% Prior: +4.2%

8:30 US Initial Jobless Claims W/E November 22 Exp: +533K Prior: +542K

8:30 US Continuing Claims W/E November 15 Exp: 4050 Prior: +4012K

9:45 US Chicago Purchasing Manager November Exp: 37.3 Prior: 37.8

10:00 US University of Michigan/Reuters Confidence November Final Exp: 57.9 Prior: 57.9

10:00 US New Home Sales October Exp: 443K Prior: 464K

10:00 US New Home Sales (M/M) October Exp: -4.5% Prior: +2.7%

10:35 US DOE U.S. Crude Oil Inventories W/E November 21 Prior: +1599K

10:35 US DOE U.S. Gasoline Inventories W/E November 21 Prior: +539K

10:35 US DOE U.S. Distillate Inventory W/E November 21 Prior: -1471K

10:35 US DOE U.S. Refinery Utilization W/E November 21 Prior: +0.32%

12:00 US EIA Natural Gas Storage Change W/E November 21 Prior: +16

Thursday:

No data expected to be released in North America as U.S. markets are closed for the Thanksgiving holiday.

Friday:

U.S. markets are still closed for the holiday weekend. In Canada, markets will receive Canadian current account balance for the third quarter and October's industrial product price index.

The consensus is calling for Canada's current account surplus to fall slightly in the third quarter to $5.1 billion, down from the previous surplus of $6.8 billion.

Meanwhile, the industrial product price index is expected to fall 1.5% following September's 1.2% rise.

8:30 CA Current Account (Balance of Payments) Q3 Exp: C$5.1B Prior: C$6.8B

8:30 CA Industrial Product Price (M/M) October Exp: -1.5% Prior: -1.2%

8:30 CA Raw Materials Price Index (M/M) October Exp: -7.0% Prior: -7.2%

10:00 US NAPM-Milwaukee November Prior: 42

By Neils Christensen, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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