FOREX: Monday results. [E]

The USD gained against the EUR for a sixth day on Monday showing the longest rally since November, on speculation inflation reports this week will prompt FED to raise interest rates for the 17th straight time.
The dollar showed its biggest weekly gain versus the yen in three months.
The G-8 said on June 10 "global growth remains strong,'' suggesting the world economy can withstand higher rates so its not the end of rates elevation.
The additional fact of pressure on EU currency were expectations on weak June business sentiments index in the Europe for the recent 5 months.
Europe may face with cooling of economy expand,'' said Yuji Kameoka, Daiwa Institute of Research. ``Weak economic data will not play in favor for EUR.'' he adds.
Among yesterdays data should be remind that Britain output gains were the most significant since September 2005 prior year. Such elevation owns oil hikes. Besides m/m and y/y Output in May exceeded forecasts. However it has not rescued sterling from sales though they were not such significant as EUR one.

EUR/USD after consolidation in a narrow range $1.2610/40 the rate has continued decrease. The important support $1.2570/80 has been as a result reached. However recoil has not followed. Day was closed in area of day time lows.
GBP/USD after testing resistance $1.8470 has started to decrease. As a result the support $1.8380 has been tested. From here the rate has rolled away in area $1.8420 in which has finished trades.
USD/JPY after consolidation in a range Y113.95/114.20 has grown in area Y114.50. After that the rate was stabilized in the given area and finished trades on Y114.43.

Recent performances of FED representatives give the basis to speak that the problem of increase in price pressure remains the basic principal cause of anxiety of the central bank.
FED Cleveland President Sandra Pionalto supported colleagues and also emphasized concern on inflation. тАЬRecent inflation data worry me but were expected",-she said. The main CPI lifted on 35 for the last three months, she marked and added that in case of tendency continuation the inflation can exceed comfort level''.
Pianalto believes that inflation problem is the hardest clause in monetary policy decision making. On her point of view besides growing inflation pressure 5% key rate corresponds to a gradual improvement of inflationary prospects.