The start for today will be from the European continent as UK is to announce their most crucial piece of data that will come to confirm surging new record of prices imposed by producers to the economy. The CPI is expected to leap forward ahead extending the rally from the bank's target zone to an annual 2.6% as the BoE left rates steady preemptively as inflation according to King will prolong the spike above 3.0% this year.

Balancing among downside risks to growth and upside pipeline pressures is complicating the picture and forcing the easing policy for the BoE to gradual as they suffer the aftermath of the credit meltdown and the worst housing conditions since the last recession. Inflation is eating away consumers' disposable income and high food and energy prices are formulating a burden for them to maintain their high living standard, and that concerns the UK and the US in specific.

The feds when decided to take rates down to 2.0% in the seventh consecutive cut had left the door open, threatening of inflation threats that might withhold them from easing further. As now the focus is on growth and inflation data which might provide the insight about the timing and the extent of the next move, as futures traders are keen for steady rates in the upcoming meeting.

As the start today will be with April Retail Sales report, as consumers are burdened as we said by surging energy and food prices in addition to a fragile and week jobs markets as the layoffs have mounted strongly in the first quarter. Retail Sales are expected to have dropped 0.2% after the unexpected rise in March of 0.2 percent, while sales excluding autos are expected still strong and to have gained 0.2% after 0.1% in March.

Consumer spending accounts for the major contributor of the aggregate economy nearing 3/4 of the Gross Domestic Product, and as long as the sentiment remains weak they are suffering with home losses, homelessness, tight liquidity and joblessness they are still to fall behind of supporting the economy after the sluggish contribution they posted in the first three months of the year. While with now emerging inflation pressures mainly driven by imported inflation as the spare capacity in the economy is still high as economic activity remains week; confirming those fears to price stability is today's Import Price Index which is expected to have edged slightly from March rising 1.6% after 2.8% while on the year expected to edge from 14.8% to 15.0 percent.

Bernanke will be pleased to see that the gauge of inflation in the economy is still lidded as the Feds unlike the European counterparts take core inflation into consideration, and as long as the spike of volatile factors do not materialize then the policy now remains accommodative and is to promote growth. Rebates according to the fiscal stimulus have started to be given to consumers and it is still early for us to tell the effect though the Feds are sure they are to stimulate spending and so forth the economy.

The conference today is waited to see if the Chairman is to provide more details on the economy, as he will be addressing the liquidity issue, the last of which measures were taken was to increase the swap lines with the ECB and the SNB and enhance the auctions amount by 50% as dollar LIBOR was shooting the roof in Europe showing that still liquidity is a matter to take into consideration regardless of the massive amounts pumped to secure markets specifically by the ECB.

Stay tuned for this rich day, as we are to keep you upbeat with the major change in sentiment that is to abrupt after Bernanke takes the stand and the retail sales set the ground for more inflation and housing data this week