American focus: expectations of rates increase in the USA continue to support USD [E]

Dollar strengthens its positions against uniform currency a six straight week. The main cause of dollar's increase remains speculations on inflationary growth which will issue in the middle of current week, become the reason of FED interest rate continuation process.

Recent speeches of FED officials give a background to say problem of price pressure increase remain the main reason of central bank anxiety.

The market of futures now on 86 % considers probability of Fed rate increase in the end of month to 5.25%. On the last Friday such probability was 82 %, and in the middle of May did not exceed 40%.

On Tuesday will issue PPI, and CPI on Wednesday.

As expected the major indexes PPI PPI m/m диаграмма and CPI CPI m/m диаграмма will raise in May on 0.4%, and indexed without food stuffs and energy carries prices PPI core PPI core диаграмма and CPI core CPI core диаграмма will strengthen on 0.3% in April.

The major today's event will be speech of Federal Reserve Chairman Ben Bernanke at 23:30 GMT.

Remind that one week ago aggressive comments of FED Chairman concerning inflation provoked speculations that FED will continue the process of interest rates increase and were the reason investorsтАЩ review of their attitude to dollar.

Additional fact of pressure on european currency is expectations on business sentiments index decrease in the Europe.

Accordint to forecasts the index of European Economic Institute ZEW ZEW диаграмма, which will issue on Tuesday, in June will fall to 45.0 against 50.0 in May.

«The rates of economic growth in the Europe can be slow down,» believes Yuji Kameoka, the currency analyst of Tokyo representation Daiwa Institute of Research, division Daiwa Securities Group Inc., the second largest broker company in Japan. "Weak economic data become a negative for euro", - added analyst.

The major stock indexes opened with insignificant growth, however in recent time don't show desire to develop success and consolidate near zero levels.

Considering absence of economic data, messages on merges and corporate news buyers have some reasons for optimism after serious falling the market last week when indexes have lost from 3 % till 4%. Before to give forecasts of development events in future we prefer to wait inflationary data and Ben Bernanke's speech.