In the US, New Home Sales, monthly indicator to value the number sold households, 313K is likely with no change from the previous month.

British inflation dropped to 5%, still far above the official target, but what’s really worrying the central bank is the high unemployment, which will eventually lead prices to fall. We’ll get to hear more from the BOE in the meeting minutes.

In the US, CB Consumer Confidence The Conference Board consumer sentiment decreased in May by 5.2 from the previous month reaching 60.8 indicating a slowdown in consumer spending. The same figure is expected this time.

The Euro-zone is heading for a rate hike in July according to Jean-Cluade Trichet’s phrasing at the press conference last week after using the code words “strong vigilance” hinting this event. The Euro is decreased against the USD following the Greek burden on leading European countries and indications of a slowdown from Germany and France. Will this slowdown deepen? Let’s Start:

Q1 growth was confirmed at 0.5%, but the overall picture is still worrying. Realized sales and consumer confidence cheered the pound. There are many skeptics. Let’s start:

Inflation is heating again in the UK, after a one month break. On the other hand, a big rise in jobless claims is quite worrying. What direction will the pair pick? Let’s start:

In the US, Federal Reserve Chairman Ben Bernanke, due to testify on the semi-annual monetary policy report before the Senate Banking Committee, in Washington DC. As head of the central bank, he  controls short term interest rates and influence the nation’s currency value.

There are already three MPC members, including an internal BOE member that support rate hike. On the other hand, GDP was revised to the downside in Q4 2010, sending the pound down. Which force will win now?

Yet again, no statement was released with the rate decision, showing the divided BoE once again. Apart from indicators, some central bankers will speak this week, and will also impact trading. Let’s start:

 In Great Britain, Inflation Report Hearings, Bank of England (BOE) Monetary Policy Committee (MPC) members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.