European focus: John Snow resignation led to USD drop.[E]

European session showed USD drop after a message on resignation John Snow from position of Treasury Secretary. He was known as “strong USD supporter”

Donald Evans, a former Secretary of Commerce and close friend of President George W. Bush, may succeed Snow.

``Market players suppose that someone like Evans could be willing to allow a weaker currency to help exports,'' said Niels Christensen, a currency strategist from Societe Generale SA in Paris. ``Investors are quite ready to sell the dollar at the moment.''

Extra pressure on dollar give speculations before awaited weak data on consumer confidence in U.S.
“Market picture shows awaiting of some hints that FED will take a pause in raising policy at the next FOMC meeting, believes Daragh Maher, currency strategist from London department in Calyon.

«Weak data will enforce investors sentiment for sales.»
Forecasts that Conference Board today will report on Consumer confidence which has decreased in May to 100 pp. against prior data in 109.6. Such drop was led by sharp lift of energy and fuel prices that negatively influence investors activity.

FED governors have precisely declared, that the further steps of the Central Bank on interest rates will depend on economic data.

Interest-rate futures show traders are pricing in a 56% chance the FED will elevate rates to 5.25% at a meeting on June 29. The last week showed such possibility in 60%.