European session: USD consolidates. [E]

Next data issued:

06:00 DE PPI (May) 0.1% 0.3% 1.0%

06:00 DE PPI (May) y/y 6.1% 6.4% 6.1%

08:30 UK M4 lending (May) provisional, bln. 16.1 27.9

08:30 UK M4 money supply (May) provisional y/y 11.8% 13.1%

08:30 UK PSNCR (May),bln. 7.38 5.0 -1.78

08:30 UK M4 money supply (May) provisional 0.6% 1.3%

On Tuesday the yen rose the most in more than 2-weeks against the dollar after BOJ Governor Toshihiko Fukui said policy makers need to adjust interest rates from near zero percent ``without delay.''

According to recently published report May German PPI appeared the highest since June 1982. This was caused with high prices for energy carriers.

The other data showed Great Britain PSNB on a record level for this months. Besides the PSNB in May became second-largest for all history of gathering of statistics on this parameter. The highest number has been fixed in November, 2005

Parameters for an initial stage of current fiscal year already should worry the Ministry of Finance of the Great Britain and it's head Gordon Brown's. Recently Brown spoke about necessity of tightening of financial discipline to reduce the state expenditure. The national Bureau of statistics massage emphasizes that the general state expenditure grew more quickly, than current incomes.

But market reacted obviously on such data. The currencies continued consolidation in a former ranges.

EUR/USD remained within the limits $1.2555/90.

GBP/USD after lift to $1.8460 has sharply fallen $1.8400. Significant recoil has not followed, and the rate was stabilized in a narrow range $1.8400/10.

USD/JPY after consolidation in range Y115.60/80 has sharply decreased in area Y114.60. After short stabilization in range Y114.60/80 has sharply grew in area Y115.30. Then consolidation within the limits of Y115.00/30 has followed.

Among remaining economy data for today it is necessary to focus on the real estate report in the USA. The Housing starts May can show the lowest gain since November, 2004. The Building permits can fall up to the minimal level since November, 2003. Conversations on delay of growth of economy because of excessive increase of rates in that case can amplify.

The residential construction today may show lowest since November 2004.

Building permits probably may fell to the lowest since November 2003.

This can add rumors for economy slow down due to Fed higher interest rates that won't play in favor for USD. But ultimately currencies will trade within the limits of former range.