FOREX. Tuesday results [E]

On Tuesday the euro rose to a record showed a three-day high versus the dollar after issued data showed in June German business confidence reached its st
The speech of ECB council member Nicholas Garganas also supported the euro which signaling possible interest rates move up on 50 b.p.
Report also showed Italy business confidence in June climbed to its highest level since December, 2000. It was promoted by improvement of moods in occasion of short-term orders and manufactures.
At the same time EUR advantages versus the dollar were limited before FOMC meeting this week. There is a probability that Fed will also declared about acceleration of interest rate increase. If this happens the situation will aggravate and the market with focus attentively on economic data of both regions. However till June 29, the market will await, and currencies wont overflow the former ranges.
U.S. data appeared ambiguous and influenced a little on the market.
The National Association of Realtors said existing home sales fell to the lowest level since January 2006. IndexтАЩs drop for the third time in 5 months, remind that it is slowdown economy in the USA.
On the other hand, Consumer Confidence report of Conference Board showed that in June index increased contrary to analysts expectations. Nevertheless, index weakly correlates to consumer charges and has not caused USD buyers optimism.

EUR/USD during trades decreased from $1.2617 to $1.2560. After that the rate stabilized near $1.2060/80, and remained to closing of trades.
GBP/USD after consolidation in a range $1.8210/40 has dropped to $1.8190. After that the rate was stabilized near session lows and closed trades.
USD/JPY during trades rose from Y115.86 to Y116.60/70. Later consolidation in a range Y116.35/50 followed, where the pair closed trades.

Currency markets stagnation speaks about investors unwillingness to undertake active actions to finding-out that Fed intends to do in future.
``The markets are basically on hold to see what the Fed is going to signal'', said Bill Bertha, senior currency dealer at Mellon Financial Corp. ``If the Fed signals they are coming to the end of the rate-increase cycle, the dollar will weaken.''
Interest-rate futures are pricing in a 100% chance the Fed will boost its benchmark rate a to 5.25% on June 29. Besides, chance of another move estimated in 80% in August. On Monday chances estimated in 85%.