FOREX: Wednesday brief. [M]

Wednesday became a continuation of USD elevation. News from EU has supported EUR with a report on accelerating inflation in April. This data could become a benchmark for rising rate in Eurozone.
But American session has made a reversal of situation.
Despite of fears of the constrained inflation, the CPI has shown growth of price pressure in the USA after rather neutral report PPI published on the eve. Increase in CPI ”core’(ex.food) became a pivotal one. Report has exceeded analysts forecasts on decrease. As a result speculation on a market renewed. Traders and analysts wait for FED’s rate increase.
At the same time French Minister of Finance Breton reported that Eurozone is not well with high EUR. It has led to USD rally which did not stop before the end of the trades.

EUR/USD during the trades has raised in area $1.2910/20. Offers have stopped growth and became the reason of recoil to $1.2880/90. At the American session EUR has started to decrease, therefore has tested support on $1.2700. Recoil in area $1.2750 then has continued to decrease. Session was closed on $1.2725.
GBP/USD during the session steadily raised. As a result the maximum has been pointed on a mark $1.9001. Offers have stopped growth and became the reason of recoil to $1.8950. News from the USA have led to sharp sterling decrease in area $1.8780. Bids became the reason of recoil to $1.8850, but later decrease has renewed. Trades were closed on a mark $1.8795.
USD/JPY has tested the important level of support Y109.00, but could not break it. Then recoil to 109.30/40 has followed. The USA CPI has led to growth of a rate in area of resistance Y111.30. To overcome the given level it was not possible, so the rate consolidated. Session was closed on Y111.15.

MPC Minutes were published also. Opinion of members MPC Bank of England at voting under the rate were divided, for the first time for last 8 years. The report has shown that 6 members, Mervin King, Bank Governor, has voted for leaving rate without changes at a level of 4,50 %, but David Wolten has voted for immediate rate increase on 0,25 %, and Steve Nikkel voted who had been on meeting last, has supported rate decrease. For the first time voices were divided into 3 opinions since August, 1998.
Committee members pointed on manufacturing growth has increased higher than trend according to exit-pole results and also, that manufacturing and economic situation have improved.