Forex: Wednesday results.[E]

Wednesday appeared the third strict day of USD drop. The dollar declined for a second day on speculation further interest-rate increases by the Federal Reserve will prompt the U.S economy slowdown.
The euro advanced after ECB President Jean-Claude Trichet. He said that inflationary pressure remains in region though 2007.
We aren't satisfied with inflationтАЭ, - Trichet said in a speech to a European Parliament. тАЬWe'll continue to do all that's necessary to counter inflationary risks and contain inflationary expectations.
Trichets speech crimped USD long positions closing after signs of unsuccessful testing of important support and its too early to speak about sustainability of EUR rally. USD slump keeps within the technical correction.
The main event became BOE June Minutes. Data appeared obvious and didnтАЩt bring new sentiment to market. According to Minutes, at June BOE meeting held on monetary policy most of members accepted interest rates preservation at a level 4.5% supported for the 10 months successfully. First-time voter David Blanchflower, Stephen Nickell follower, has joined the majority, that crimps market sentiment with its hints. The voices divided in a ratio 7 to 1 as Minutes showed. David Walton was stabile in his opinion and voted for rate hike to 4.75%.
Minutes also showed, rates of economic growth for last month as a whole corresponded to last forecasts of Committee on monetary and credit policy of BOE which have been presented in inflation quarterly report in the middle of May.
The situation in the world financial markets was an exception. Securities were essentially loosing
the prior month.

EUR/USD after consolidation in a range $1.2510/40 lifted to $1.2670/80. But significant recoil has not followed. The day closed on $1.2664.
GBP/USD after consolidation in a range $1.8450/60 dived to $1.8410. But the rate couldnt break this level and rebounded to $1.8450 where closed trades.
USD/JPY remained within the limits Y114.60/90. Than rate climbed Y115.20, but recoiled to Y114.80 by the end of trades.

Remind that 16th June report showed EU inflation data made 2.5% in May extending ECB target level for 16 months successfully.
The euro move is purely a reflection that there's no change in Trichet's view on inflation,said Simon Derrick, chief currency strategist of London department in Bank of New York. They remain consistent and endure on further tightening of key rates policy.