The Japanese consumer prices rose the highest in a decade, proving that even in the most peaceful inflation wise countries inflation is a pressure! Food and energy prices are not giving any room for banks but to look and watch out for price stability, yet growth is still the predominant concern due to what is called the global slowdown that started in the States, though inflation is something nobody can put aside for a long time.

Going back to the United States, where all problems are materializing, slowing growth, higher inflation, maybe stagflation is on the doors rather than a recession; a long with a weaker dollar and weaker stock market, more writedowns in the financial sector and as we figured from yesterdays GDP, lower corporate profits were from the financial and the non financial industries.

Today, we are waiting form more confirmations on inflation levels in the States, and more on consumer confidence, as personal spending is expected to rise the lowest in a year by 0.1% following a 0.4% in January, while personal income is expected to incline at a steady pace with 0.3% just like in January, the core PCE probably rose 0.2% in February, and 2.2% from a year ago.

The Federal Reserve made it clear that they are focusing on stimulating growth levels all over again rather than anything else in the economy, yet they mentioned that they are gonna keep an eye on inflation, maybe they wont do anything about it now, but they will definitely start preparing for a new fight with inflation after they are done cutting rates and reviving economical growth.

Confidence, which is slashing all records low, breaking all barriers, and singing the most that we are in a recession, as the Conference Board consumer confidence reached the lowest in more than 30 years, today Michigan consumer confidence is expected to slip to 70.0 for the final reading in March, down from 70.5, signaling that consumer are still not seeing the light at the end of the tunnel.

The story for the U.S. economy this week was rather bright so far, yet, the dollar managed some how to get even weaker against the Euro and the British pound, and we expected with such data to continue weakening unless something cames up, to mark a huge sign that things are turning in the right direction and the worst has gone…till that time, we hold our old truths of further losses in greenback's exchange rates.