American focus: weak Labour Market data provoke new dollar sales.

Dollar has dropped to year minimum against Euro and lost ground against yen after weaker then expectacted Labour Market data strengthened speculations that FED will stop the rate increase in the nearest future.

This week dollar lost nearly 1% against Euro after ECB representatives made a hint that process of rate increase will continue although FED is going to make a pause in prosess of rising rates.

As Labour Department informed, on April 138,000 direct working places were created Payrolls (К) диаграмма in compare to overviewed with decrease to 200,000 according to data previous month. Hourly earnings grew on 3.8% in compare to April 2005 that entered maximum growth since August 2001.
«Main number turned out disappointment indeed, said Nick Bennerbrock, strategist Brown Brothers Harriman & Co.

«Data allows FED to make a pause on June meeting and this fact summons dollar sales». Remind, 20 April Ben Bernanke announced that FED may stop rate increase at «any moment».
Yield of the futures on interes rate testifies this time expected 5.25% increase probability has decreased to 34% on meeting in June in compare with 46% in Thursday and 64% the day before Bernanke announcement in Congress.
The doubt concerning rate increase before 5% on next week (10 May) practically absent.
European finance ministries announced the Eurozone economy is able to make deal with rate increase and Euro rise after Trichet’s hinted that rate will be increased next week.

Therefore dollar lost the main factor of support and will stay under pressure closer time.