European focus: USD snaps 7-days winning streak [E]

The dollar snapped a 7-days winning streak against the euro, and fell versus the yen, on speculation further interest rate increases by the Federal Reserve will weigh on economic growth.
Besides, the reports will publish tomorrow can show a slowdown in industrial sector and growth the number of claims for jobless benefits.
тАЬWe think the dollar rally was short term,- said Tim Fox, Dresdner Kleinwort Wasserstein. тАЬIt's debatable whether one or two more the Fed will hikes the rate, but the dollar continues the downside.
There are concerns that the Fed rates are over-tightening, - said Ryohei Muramatsu, Commerzbank. тАЬThis is bad for the dollar.
Also USD decrease promoted by technical indicators. Many market players consider the U.S. currency growth was too fast and correction is necessary.
тАЬ The dollar advanced too far, so I won't be surprised to see it face a short-term downward correction,- said Minoru Shioiri, Mitsubishi UFJ Securities Co.
There are fears in this month that Fed will lift the rate on June meeting in a 17-th time and USD increased versus uniform currency at 2.3%. Also expecting CPI in the USA may show indexтs growth.
Remind that president of the Fed Bank Sandra Pianalto said inflation exceeded comfort level. President Richard Fisher adheres to same opinion also.