Three events and economic releases to watch out this week

There could be major spark of volatility, especially surrounding the following three events we are going to list down. Market started the week in quite a positive mood and global risk appetite just improved. Best performer today is Nikkei cash market, which as of now is up more than 7%, trading at 16020. Safe havens assets on the other hand is taking a hard hit. Yen is down -0.6% today so far, trading at 113.9 and Gold is down -1.6%, trading at $1218/troy ounce.

These three events and releases will be closely watched to gauge the sentimental next push.

• FED minutes - FOMC will release minutes of its January meeting, in which FED unanimously chose to keep rates steady after hiking in last December. It will be released on Wednesday at 19:00 GMT. Minutes are likely to provide greater glimpse over the concerns of the officials, especially regarding current turmoil in financial markets.

• EU summit - Both European union and Britain facing uncertain times ahead regarding British membership in the bloc. Both the parties are working hard to secure a mutually acceptable deal that Mr. Cameron will be able to sell to British public. Mr. Cameron has raised the expectations that a deal could be reached in this week's summit. It is very crucial globally but more so for Pound's move. Leaders will be holding two day summit beginning Thursday.

• US inflation - Fate of monetary policy in US would depend on this data solely, whether inflation picks up or not. Markets have now started pricing partially possibility of negative rates from FED. If inflation disappoints won't bear well for Dollar as such expectations would rise.