Tuesday: FOREX results.[M]

In first half of day USD has strengthened it’s positions against EUR after unexpectedly low ZEW.
According to ZEW Research Institute (ZEW диаграмма), index ZEW in May has fallen to 50.0 against April’s 62.7.
Remind that EUR became stronger on a data of economic extend in Eurozone which could led to increasing rates by ECB. But weak data can change such expectation.
From the beginning of the year EUR lifted on 8.2% on a light of expectations of reduction difference between the USA and the Europe rates.
Data of inflation in Great Britain remains on expected level and practically were ignored.
Weak PPI and disappointing data from real estate sector recovered bearish sentiment on USD.
In April PPI grew on 0.9% against 0.5% in March. The PPI “core” ex. prices for the foodstuffs and energy carriers, has increased the last month for 0.1 % as well as month earlier. Analysts predicted growth of a key indicator on 0.2 %.

EUR/USD In first half of day remained in a range $1.2770/1.2830. After publication PPI the rate has tested intermediate resistance $1.2870, however, the offers in given area have constrained strengthening pair, and after an output of IP data EUR has decreased in area $1.2810. To the end of day the pair has renewed growth and has closed trades on $1.2860.
GBP/USD during day traded in $1.8750-$1.8860, and tested levels step by step. In a second half of session the sterling has overcome resistance in the field of $1.8860/65 and has practically reached $1.8900. The trades ended on $1.8880.
USD/JPY from Y110.80 has sharply decreased in area Y110.00. However, bids here became the reason of return to Y110.50. During renewal of pressure upon dollar the pair has reached Y109.70.

Besides in April Housing starts have fallen to 7.4 % up to 1.849 mln. y/y, and Building permits - on 5.4 % up to 1.984 mln. y/y. Growth of industrial production in April on 0.8 % against March +0.6 % temporary supported EUR. Owing to optimistic performances of the European officials EUR fall was a short time question.
The Board of Governors Christian Nojer has declared, that inflationary pressure in region amplifies, that confirm opinion on further rate lift in the Eurozone. In due time, Clause Libsher has told in interview to Financial Times, that, in his opinion, " the further tightening of ECB monetary policy is necessary."