Investors will be awaiting monetary policy decisions from four central banks this week. The first will be the Reserve Bank of Australia. The economy there continues to be strong thanks to domestic demand despite weak exports. But interest rates are expected to remain at 4.75 percent, as weak global growth will push back consideration of a rate rise.

Expectations are mixed for the Bank of England and the European Central Bank. Traders expect a cut in the Fed funds rate by the Federal Open Market Committee after its Wednesday meeting despite the already historic low level of 1.75 percent. But that would leave the Fed with little room to respond should there be a war with Iraq or should other political problems emerge that could hurt the economy.

And there are questions whether the ECB or Bank of England would follow the Fed's direction. The ECB is stubborn about reacting to weakening economic conditions, and the BOE has a relatively strong domestic economy, especially in housing, and a fairly cheap level of debt servicing. Investors could see the status quo maintained at week's end.

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