European focus: USD slowed down.[E]

Today USD drop versus yen stopped the most significant dollar gain since March on speculations Aprils Trade balance will show increase.
As forecasted the trade deficit grew to $65 bln. from $62 bln. in prior months. The highest one was in January and made $68.6 bln.
We see the possibility of data to be worse expected. - says Mitul Kotecha, Calyon. Seems like it was the strongest USD rally for a current moment.
Since April, 21st the dollar versus yen has fallen on 2.2 %. Remind , that at the same time market sentiments were supported be a great amount of data connected with meetings of heads of the Central banks and other governors.
The main theme of a meeting were the Asian currencies, more precisely, concern, that some countries of Asia enable national currencies freely to be converted.
G-8 will meet today and speak on global disbalances.
The U.S. trade balance with the G-8 meeting will direct market sentiment '' said Takehiko Jimbo, a currency manager at Mitsubishi UFJ Trust & Banking Co. This is surely can be unfavorable for the dollar and positive for the yen. As analytics say the dollar may fall to Y113.40 against yen and $1.27 versus the euro today.
FED representatives Jack Guynn, Governor Susan Bies and William Poole this week repeated FED President Ben Bernanke words on unwelcome inflation growth.
lauses on rates differentials support still support USD says Etsuko Yamashita, Sumitomo Mitsui Banking Corp. Investors are looking to Bernanke's speech to reconfirm the Fed's stance on a June rate hike.''
Analytic believes that dollar against yen will trade in a range Y112-Y116, and $1.25 - $1.29 versus euro in a monthly average.