FOREX: Monday results[M]

Monday showed the 5-weekly USD rally against EUR on speculations continuing inflationary pressure in USA. Traders decide to avoid risk and pared bets. European session wasn’t full of important news.
Nevertheless could be seen that on the British market of the real estate prices continue to raise. Prices lift already five months new average highs in stg209 829. Also had been rose forecasts on 2006 up to 8% from 5%.
USA data broke analysts expectations. So, NY Fed Empire State manufacturing index has shown decrease.
According to the USA Treasury in March foreign investors have got the American shares and bonds for the $69.8 bln. against reconsidered up to $90.5 bln. last month. However, despite of decrease, indicator nevertheless allows to cover trading deficiency of USA which in March has made $62 bln. That is a positive support for further USD grow.
«Sells of USD were to much. Correction was only a time question», says Michael Woolfolk, strategist from Bank of New York.

EUR/USD during the trades has decreased with $1.2970 in area $1.2780. Bids have stopped rate drop, but significant recoil has not followed. The EUR was stabilized in area of a day time minimum and has closed on $1.2798.
GBP/USD while diving reached the support on $1.8780. Bids supported rate so it has recoiled to $1.8820/30. Than rate has marked a day minimum on $1.8763. The rebound wasn’t too strong and trades closed in area $1.8780/90.
USD/JPY after increase to Y110.50 has sharply decreased in area Y109.80. However, bids became the reason of return to Y110.50. Here the rate also was stabilized before the end of trades.

JPY failed against USD after Bank of Japan broke market expectations on increase rate. The Governor of Bank of Japan Toshihico Fukui is still assured, that the prices will show only the moderate growth, and simultaneous supervision over structural changes can help to make consumer prices more sympathetic to the long economic growth.
"When costs on a labour will start to grow and if, this and other factors will be united, it will rise prices in Japan, - has told Fukui.-But sharp inflation will not be, the prices will grow gradually".
Fukui also has told, that end of this process differs from the decision to change a policy, having lifted the rate from nearby zero level.
But he wasn’t reach with comments on the further rate politics and marked that "the refuse of zero-point rate politics will depend on the economic situation and price fluctuations".