Forex: Wednesday results.[E]

On Wednesday the USD snapped a 7-days winning on speculation further interest rate increases by the Federal Reserve will suspend economic growth.
Also USD decrease promoted by technical indicators. Many market players consider the U.S. currency rally was too fast and correction is necessary.
USD has sharply felt versus other main currencies after issued data testified inflation growth in May. At first dollar set to gains but unsuccessful test of key resistances led to long positions closing and following USD drop.
The CPI ex. food and energy exceeded expected level the Labor Department said.
As a result the doubts key rate will be lifted by the end of current months dispelled.
The recent data on Britain unemployment on a standards ILO for February-April made the highest since October 2004.
France and Italy inflation reports were as expected and obvious for a market.

EUR/USD after lift to the area of resistance $1.2600 the rate started to rebound. As a result EUR recoiled to $1.2530. However then the rate started to raise sharply and probed resistance on $1.2650. Offers became the reason of recoil to $1.2580. Day was closed on $1.2604.
GBP/USD climbed to $1.8450. Offers became the reason of recoil to $1.8400/10. Then the rate was stabilized in a range 1.8400/20. After USA data output the rate lifted to $1.8490/00, however, later again recoiled to $1.8430 where finished trades.
USD/JPY after decrease to Y114.80 lifted to Y115.00/10 and later stabilized in the given range. Then raise to Y115.30/40 has followed. The rate couldnтАЩt break the given level and recoiled to Y115.00 by the end of trades.

Futures traders are pricing in a 100% chance the Fed will raise its benchmark to 5.25% at the June 29 meeting. Yesterday possibility made 90%. Moreover, the possibility inflation growth can become the reason of further key rate increase in August amplified and makes now 44 %.
As a result the rumors FED rates hike can suspend economy growth followed. This doesn't play in favor for USD.