Forex: Tuesday results.[E]

The yen sharply rose versus the dollar on Tuesday trades.
USD remains within the limits of recently formed technical resistance versus EUR.
Recently published report showed predicted May German PPI which 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 parameter 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 its head Gordona 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.
Issued data today shows mixed picture in a U.S. real state market.
Thus the government report showed U.S. Housing starts unexpectedly rose on 5% in May to an annual rate of 1.957 million. At the same time Building permits, a sign of future construction, fell 2.1% to lowest level since November 2003 and made 1.932 million as the Commerce Department said.
There were speculations the housing market may be the first to falter as the economy slows,'' said Grant Wilson, a currency trader in Mellon Bank. ``Today data reduce such fears and provide a little support for the dollar.''
But market reacted obviously on such data. The currencies continued consolidation in a former ranges.

EUR/USD remained in a range $1.2555/90.
GBP/USD after increase in area $1.8460 has sharply dropped to $1.8400. Significant recoil has not followed, and the rate was stabilized in a narrow range $1.8400/20 where finished trades.
USD/JPY after consolidation in range Y115.60/80 has sharply decreased in area Y114.60. After short stabilization in range Y114.60/80 sharply raised to Y115.30. Then consolidation within the limits of Y115.00/30 has followed. By the end of trade day the rate insignificantly dived and closed on Y114.88.

The yen rose the most in more than 2-weeks against the dollar after BOJ Governor Toshihiko Fukui speech yesterday.
The key rates are too low,-he declares. The yen also climbed as BOJ Minutes from the last meeting suggested its 2.6% advance this year impact negatively on Japanese companies.
Fukui's comments surprised markets, and traders are fully priced in a chance BOJ will move key rates sooner rather than later,'' said Niels Christensen, Societe Generale SA. We will possibly see further rate hike as early as next month, and this means a stronger yen.
We are entering a phase of tight monetary policy now. We need to implement policy gradually,'' Fukui said. He added that the timing of borrowing costs increase depends on economic data and the central bank is not going to crimp on any predetermined period.
Later Fukui informed that there is no necessity to hurry up with this question and cooled bulls. Nevertheless many analysts expect the bank to raise rates as soon as July. Thus they believe BOJ can move its key rate to 0.5% already by the end of current year that will be the highest boost since 1998.