FOREX. Wednesday results[M]

Yesterday took place perhaps the basic event of this week - FOMC meeting. Predictably, the rate has been raised on 25 basic points and now makes 5.0 %. However, the subsequent behind it application by FED has set many thinking. The report marks that USA has sustainable economic grows which due to forecasts can go slower.
Especially was pointed that further actions " will critically depend on economic situation, in particular economic data. FED will react properly on changes in economic prospects. "
Actually, the text of the application leaves opened a question concerning rate increase up to 5.25 % at June meeting.
Reaction on such application was different. Long-awaited clearness and has not come, but the market has reacted to a phrase: «There is a possibility of additional toughening of monetary policy ". USD correction started. Earlier on the European session USD marked new years high against EUR and 8-months minimum against JPY.

EUR/USD in first half of day remained in a range $1.2770/1.2800. After the announcement of the FED’s decision the rate has sharply decreased in area $1.2750 and then sharply raised in area $1.2820/30. Located here offers have resisted EUR. The rate has started to decrease and by the end of trades has returned to $1.2780.
GBP/USD after testing resistance on $1.8720 recoiled to $1.8600/10. Later rate recovered in the narrow range $1.8605/30. FED’s report led to jump up to $1.8700. Then course started to go under and closed trades on $1.8642.
USD/JPY during trades gradually decreased. As a result the session minimum has been marked on Y110.30. Then the rate was stabilised in the given area. Later decrease has proceeded. The rate has tested support on Y110.00, but could not brake it and has started to roll away. The trades closed in the middle of a day time range in area Y110.60.

European news support EUR.
So, growth of economy of Germany in the first quarter 2006 can make 0.5 % against the fourth quarter 2005, has informed economic institute DIW on Wednesday. Earlier DIW predicted this indicator at a level of 0.3 % in view of number of the working days and seasonal factors.
The bank of England has published the forecast according to which inflation in Britain will exceed 2 % this year, and rates of economic growth will be accelerated before delay in 2007.
Extend of economy can reach 3% at the IX quarter before slowing to 2.75% for the last three months in 2007.
Inflation of the CPI can astute 2% this year but will start to delay to the target point by the end of 2007.
Also the BoE has lowered the forecast of economic growth for 2007. The separate report has shown, that the negative balance of foreign trade by the goods of Britain in March was reduced , what didn’t reached economists forecasts on growth of deficiency.