European focus:

On Thursday the USD has continued to get down not only against EUR, but also against the Japanese yen. Strengthening of yen proceeds ahead of the results of Bank of Japan 2-day's meeting. The Bank may change the estimation of growth of a national economy, and also will highlight economy flows successfully enough, that will confirm forecasts of rate increase. The Bank of Japan kept unchanged its interest rates since 2001. The Bank of Japan key rate holds on 0.1%. Economists predict, that the central bank will reconsider its opinion on estimation of economy to "developing" from "restored". Tomorrow there will be a GDP report. Analysts predict, that the economy grew in the prior financial year on 3.2 % y/y, that is the highest since 2001. USD becomes weaker against other main currencies in a view of pessimistic expectations on today's data.
Analysts therefore wait the decrease of Philadelphia FED index to 12.2 pp. against 13.2 pp. in prior month. If indicator will become better than expected market can renew speculations about FED rates? taking into account strong CPI. At the last meeting on 10th May FOMC has lifted refinancing rate for the 16th time up to 5.0% from 4.75%. The majority of analysts predict, that in June the central bank will make a pause in a view of recent weak economic indicators. However inflationary data while remains mixed. Report PPI has shown, that growth of price pressure in the country remains under the control.
Ben Bernanke, the head of Federal reserve, speaks today at the conference on banking structure and a competition. Also other representatives report today: Kevin Warsh, Michael Moskow, President Jeffrey Lacker, Jack Guynn and William Poole. Guynn, Lacker and Warsh take part in voting on rates.