We have more light data from the US economy this week while the focal concern is to Wednesday's minutes of the last FOMC meeting which concluded a two days meeting on the 30th of April where the feds decided to cut rates by 25 basis points to 2.0% and as the vote was opposed by two members where they preferred steady rates, still since then the ideology in the market that the seventh consecutive decision to lower rates will be the last seen as inflation will start to spike as rates were seen as low enough to stimulate economic growth once more.

Inflation in April on the consumer side remained subdued opposed to expectations and unlike that stance reflected by the feds; nevertheless they did leave that spare room of moving in harmony with the situation at hand. Yet since tax rebates are being given out now energy and food prices are souring while consumers expect a worse spiral wave of prices to be heading their way which as a rule of thumbs producers are not to extremely let happen.

This week we are to see their stance, and how much are producers actually enduring from surging raw material prices and are not reflecting into a sluggish demand economy already as they struggle to withhold their profit margins which is trimmed by the second from surrounding fundamentals whether it was prices aching at factory gates or low consumption and tight liquidity for funding, all are factors that we are just judging till when they are to be capable of absorbing the heat