The European Central Bank takes over the spotlight from the Federal Reserve this week. Analysts are at odds whether the ECB will finally cut borrowing costs on Thursday. The markets may react the same way whatever the ECB does. If they refrain, the ECB will be commended for sticking to principal as inflation is still above their 2 percent stability target; if they cut rates, they will be applauded for coming to the rescue of the weakening economies. Either way, the euro will be the center of attention in currency markets this week. The ECB's monthly press conference follows the policy announcement, and whatever they do, President Wim Duisenberg will get an opportunity to explain.

The Bank of Canada is expected to cut their policymaking interest rate on Tuesday when they issue their monetary policy statement. Analysts are split between a 25 and 50 basis point cut.

Markets in Europe and Asia will be closely monitoring the revised U.S. second quarter gross domestic product data on Wednesday. Analysts expect it to be revised downward to show that the economy did not grow in the second quarter.

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