Though with the push of no more cuts the dollar obtained the most crucial comments of all was his stance to A STRONG DOLLAR POLICY! That is as well all know new to the chairman as he fears the dollar's depreciation is feeding directly into pipeline pressures and though they are not to lower rates still growth has time to consolidate before strengthening well and soaring inflation will dampen its prospects pausing as we all know a stagflation scenario.

The start will be a detour into Europe as the services sector is now inspected laying the grounds for the U.S data. The Euro Zone will take the shot releasing the final PMI Services reading for May and expectations are to see unchanged levels from both German and the aggregate economic unit at 53.7 and 50.6. Retail Sales are expected to have rebounded in April the Euro Zone while still surging inflation with high food and energy prices, and as well slowing economic growth with declining confidence has pushed consumers to trip spending though now their wages have inclined that we still to see the effect for.

In April the Bloomberg retail PMI had contracted strongly to rebound in May unexpectedly which might provide an insight into today's expected data and as well that improvement might be sensed more in May and not today. For that the sales might overshadow the PMI data for the EU today.

Though Germany is now proving to be the thumping heart of the nations yet still services account much more for other economies in the EU nation than they do for the industrialized German economy. France, Italy and Spain depend on services as an economic pole more than Germany does and with the banking crisis rest ashore the EU monetary system proved higher resilience than other financial centers in the world such as LONDON!

The UK banking sector is still under considerable stress after the credit turmoil and is the most aching factor to push economic growth to stall this year, as Britons and the economy supported growth in the past decade much on credit and since liquidity is no longer as cheap and as available spending and expansion has slowed. Other than that the crisis is affecting the components within the largest contributor to economic growth in the GDP which is services that account for 74%. The slowing sector that almost grounded to halt in April is expected to be slightly changed at 50.5; that in role confirms further the troubles ahead for the economy and the BoE as they strive to comprehend their balancing act.

As for the US economy the ADP is the first awaited. Despite the discrepancy from the nonfarm payrolls yet still it's the closest to help predict the labor market. The Private Sector is expected to have shed 30 thousand jobs in May after an unexpected addition of 10 thousand jobs the previous month which is most likely to be revised today. The median estimates for Friday's jobs is that the economy had shed and extra 50 thousand and for that the ADP today sounds so far inline since it excludes government added jobs.

The other clue that will be looked at in labor market perspective is the ISM Services. The manufacturing already in May contracted less than expected yet the services is posting the best performance among all sectors as still its growing, Expectation are that growth in the sector slowed to 51.0 in May from 52.0 while the prices paid and employment sub-indices will of main concern to market participants.

The dollar's strength will probably prevail until Friday's break point. Shall the labor market prove it is far from rebounding and the economy is still contracting and for that consumer spending is not near to strengthen, Bernanke's fears of inflation will be transformed into markets perception of Stagflation and that shall once again add to the dollar's woes and the economy all in one hand.

More details are to be added to the picture today as we prepare for the godfather of all fundamentals THE LABOR REPORT and till then we will be gliding you step by step to the big even so stay tuned for later updates