European focus: USD stabilized but is not going to drop.[E]

USD trades in a narrow ranges befor report assuming the FED will install a bit of caution for draining inflation.
Yen weakened earlier after government officials doubted deflation end though CPI lift for a sixth straight month.
“Today's report can prove that inflation is still a problem, and the FED may lift it’s key rate in June,'' said Carsten Fritsch, a currency strategist at Commerzbank AG in Frankfurt. ``That should support the USD in the short-term.''
EUR could be supported by ECB representative Erkki Liikanen message on growth of borrowing costs in Eurozone. “ His comments confirm market expectations, that by the end of year ECB key rate will be elevated at least three times.
" It already the second " hawkish " statements of ECB governors for this morning ", - marks Stuart Ritson, Rabobank Groep. "and undoubtedly it will support EUR".
The Fed has raised its key rate 16 times in two years in order to “accommodation'' of economic growth and curb inflation.
«USD raise is likely possible now», - says Scott Young, Arab Bank Australia Ltd. «Prior week the market was sure in 5% limit for FED rate hike but current situation says that traders shouldn’t be so confident». Analysts forecast that USD will open the next week with increase to $1.27 against EUR and to Y113 against yen.