FOREX: Wednesday results.[E]

On Wednesday currencies remained within the limits of existed ranges though the day wasn’t so calm.
The Euro rose against the dollar after European Central Bank policy maker Nicholas Garganas highlighted that economic expand in E.U. can overcome the forecasts and make support for interest rates hike. An exceeding forecasts IFO also fuelled EUR lift.
Separate report showed CBI industrial order books balance in May continue to increase and export order has attained most high level since February 1996
The primary factor promoted continuation of growth of industrial production, became significant growth of export orders. The index of export orders in May has reached zero value. Since 1996 value of an index till May, 2006 remains negative.
USD drop was also supported with weak DGO data. Therefore the situation changed.
USD seriously strengthened after issue strong apparel data in USA has brought to speculations continuation of rate increase by FED. As Commerce Department informed in April new home sales reached the minimum level for the last three months revised with increase home cost and also the fact that the prior months showed median price has exceeded last year number on 0.9% testifies the growth on apparel market.
Traditionally, this sector is one of the moving engine of buyer’s activity and its condition studies by FED attentively relating to percent rate.
«Home data has dispersed fears American real estate market is free appreciating falling down” - said Michael Woolfolk, analytic Bank of New York. Then he added: “ The further rate growth is now quite possible and remains positive for USD”.

EUR/USD in first half of day has sharply raised in area of resistance $1.2870/80. Offers became the reason of recoil to $1.2850. After consolidation in the given area decrease has proceeded. As a result the rate made a day time minimum on $1.2730. Then small recoil has followed, and day was closed on $1.2755.
GBP/USD after euro has started to raise, therefore has reached resistance $1.8850/60. After that the rate consolidated in a range $1.8820/40. Then the level $1.8650 has been tested. Bids became the reason of recoil in area $1.8680/90 in which trades ended.
USD/JPY remained in range Y111.60/112.10. Then the rate has started to raise promptly therefore has reached mark Y112.95. Here growth of a rate has stopped, but significant recoil has not followed. Day was closed on Y112.85.

Remind that Asian currencies were pressed with sells after message that birds flue has spread in Indonesia. The Indonesian, Thailand and Singapore currencies fell as the WHO said the virus may have spread between seven family members in Sumatra.
Bank of Canada has increased it’s benchmark rate on 25 b.p. to 4.25%. However, after issue of currency instruction CAD begin to sell. Instruction priced elements that ensure pause in circle of monetary policy strengthening. Key phrase is “ Taking into account today’s increase target on rate should reckon the level of Canadian economy growth planned in April monetary policy report and will remain inflation before 2%.