It was already the third day USD growth against main currencies.
This was led by commentaries of FED representatives which continue to show concern upon inflation pressure and hint on further rate increase.
Remind that FED bank of Saint-Louis William Poole has told the Wall Street journal his positive sentiment on further FED rate hike and emphasised that FED should “upside bias'' on a rates policy.
The additional factor for dollar growth, in particular against euro, becomes statements of some Ministers of Finance of the European countries on danger of further EUR lift for EU economy.
On Tuesday France Minister of Finance Thierry Breton informed «we should be vigilance for EUR not overflow the recent levels.”
Luxembourg Prime-Minister and the Minister of Finance in a one face
Jean-Claude Juncker fill the same.
Pierre Lequeux, the head of currency London department in ABN Amro Asset Management suppose that ECB can endure it’s displeasure in a case of EUR break of pivotal level $1.3000.
Recent report has shown April’s retail sales grew in E.U. over the forecasted one.
German orders in a manufacturing industry ex. Northern Rhine Westphalia also climbed owing to demand from abroad
Also the separate report in May for the first time this year has shown retail prices hike in Britain
"It’s clearly, that the prices in May have slightly grown in against prior data in April, after Easter pare bets. However the base trend precisely specifies reduction ", - believes the Head of BRC Kevin Hokins.
EUR/USD decreased to support $1.2760. Bids have stopped falling and led to recoil in area $1.2800 in which the trades have come to the end.
GBP/USD decreased to $1.8550 then rebounded to $1.8640/50. However pressure upon a rate has renewed, therefore it has returned to area $1.8600. Later pressure renewed. The rate dropped in area $1.8520/30 then recoiled to $1.8570 and closed trades.
USD/JPY traded in range Y112.90/113.40. In second half of day the rate has continued growth therefore has tested level Y113.70. Then small recoil has followed, and day was closed on Y113.37.
Fed Bank of Atlanta President Jack Guynn has pointed on Wednesday that «the monetary policy seems to be right.»
Nevertheless, Guynn suppose that " FOMC target remains a tracking changes in economic situation by means of recent data and economic information. Thus, we should be opened for change of our sights in case of need. "
«New data speak about the beginning of expected economy delay ", and the market of the real estate is in a stage of "natural correction”.
Guynn also adds that «current rate of inflation risks boosted on energy carriers and services gains.»
Alan Greenspan, previous FED president has reported in Congress on oil gains influence upon economy. Interest-rate future now is priced in 84% a chance of FED rates hike to 5.25% at the nearest FOMC meeting 29 June. Three weeks earlier the similar probability made about 38 %.
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