FOREX. Monday results [E]

The dollar rose to 8-week high against the yen, and lifted against the EUR, on speculation stronger growth will prompt Fed to raise its key rates twice more this year. Barclays Capital, JPMorgan Securities Inc., Lehman Brothers Holdings Inc. UBS analytics believe that Fed rates will climb 5.5% in August.
During the trades was issued only one economic report. This week unlike previous, will be poor on news.
Deficit of foreign trade in Eurozone appeared worse than analysts assumed. However, it has not appreciable affect on the market. Major currencies stabilized in narrow ranges. In the afternoon Fed Bank of Atlanta President Jack Guynn today said core inflation is beyond the acceptable range.

EUR/USD after decrease from $1.2650 the rest of the day was in range $1.2580/1.2610. Trades closed at $1.2574.
GBP/USD after consolidation in a range $1.8420/50 gained to $1.8480. Then the rate has stabilized in area $1.8470/80. After that the rate began decrease. As a result was reached support level $1.8370. Then small recoil followed and day closed on $1.8402.
USD/JPY traded in a range Y115.20/80.

Futures at Fed interest rates consider 100% probability of rate increase on 25 b.p. to 5.25% on June 29. The possibility of next rates growth in August rose to 75% against 67% in end of the previous week.
Fed officials may signal the economy is robust enough to keep raising interest rates to contain inflation, said Mamoru Ashimoto, deputy general manager of Shinsei Bank Ltd. This will boost the dollar.