American focus: USD head for monthly losses on rate pause concerns. [E]

USD will finish the week with biggest month drop against JPY since November 2004. Main reason is concern about possible pause in FED monetary policy. USD lost 5% against JPY and 6% - against Euro for last 2 months. Drop continued even after Chicago PMI report showed the index grown up to 61.5 on May against 57.2 previous month. It gives one more argument to dollar's bears, strengthening probability of next pause. On May meeting FOMC increased key rate to 5% (Federal Funds 25 years диаграмма Federal Funds 50 years диаграмма) the 16 times. On June 2004 key rate was on 46-years lows 1%. Today in 18:00 GMT May meeting Minutes will be published.
It is worth to notice JPY increase against USD and Euro . Earlier JPY rose against Euro and JPY after announcement of Chinese central bank to make yuan more flexible. Strong yuan makes import for China more cheap and national export more expensive. It helps other Asian countries' export, including Japan. Also central bank announced economy growth will be 10%. Тrade deficit in USA reached record $726 billions last year and White House officials, including demarcate Charles Schumer and republican Lindsey Graham blamed China in deficit blow. Henry Paulson, who was approved by President Bush for Treasury's Secretary post will exert pressure on China as to yuan revaluation.
Wall Street trades with plus after losses of previous session. Investors expect FOMC Minutes. They hope for FED intention to pause in June. Oil prices dropped slightly and trade below $72 per barrel. Oil inventory report will be issued Thursday. Corporate news: Google today meet analysts. Utility Mirant on Thursday evening offered near $8 billions for purchase NRG Energy. However, NRG declined proposal.