FOREX: Thursday results. [E]

On Thursday USD drop for a second day versus EUR before a report that may show foreign investors bought U.S. assets at the slowest pace this year.
The dollar rose earlier because probability of rate increase at the Fed meeting in June. However, there were rumors that hike of FED rates is excessive and became a reason of slowdown of the U.S economy restoration.
The market hasnt a precise opinion about USD, therefore on EU trades the currencies consolidated in narrow ranges.
The report showed in Britain demand for plasma TVs has strongly increased in May before the World championship on football that prompted increase of retails.
The increment was made not due to grocery sector, but on a behalf of textiles, clothes and the football form, and also electrodevices retails.
Separate report showed that in Eurozone the annual pace of CPI growth has a little amplified versus Aprils data. Nevertheless, attributes of a steady ascending trend is not observed yet.
According to data of Treasure International Capital Systems (TICS) report about inflow of U.S. assets international investors in April bought American shares and bonds in amount $46.7 bln. Data appeared less at 34% than in prior month and became the lowest since March 2005.
As a result fears regained concerning U.S. assets inflow will be insufficiently for covering of foreign trade deficit which made in April $63.4 bln.US Total Trade Balance .
Industrial Productions May drop on 0.1% after 0.8% growth in the prior month didnt inspire market.
Besides, eve data changed market picture.
Philadelphia Fed, decreased within expectations. Economist Ted Wieseman from Morgan Stanley said that major regional reviews of industrial activity testify that this sector of economy is in a good shape and allow to predict regain of national ISM in June.
Marking ambiguous character of the main indexes the economist pays attention, that "major details of both reports specify preservation of growthтАЩs tendency of industrial activity" and predicts ISM growth at 56 against 54.4 in May.
Thus, despite of 2-day's drop USD remained within the former range.

EUR/USD in first half of day remained in a range $1.2600/30. Then the rate continued rally therefore has reached resistance in area $1.2650/60. Offers prompted recoil to $1.2620 where pair closed trades.
GBP/USD raised, therefore the level $1.8540/50 was probed. However, as a result of the followed recoil the rate has returned to $1.8480 where the trades came to the end.
USD/JPY all time traded within the limits of Y114.70/115.20. Day was closed on mark Y114.83.

Futures traders are pricing in a 100% chance the Fed will raise its benchmark to 5.25% at the June 29 meeting. This possibility made 90% on Tuesday.
Moreover, further inflation growth can prompt additional key rate hike in August. This possibility now estimates in 67%. Remind that last months it made zero level.