European session: the market awaits for FOMC decision.[E]

The next data issued:

08:00 Italy, PPI (May) 0.7% 0.3% 1.0%

08:00 Italy, PPI (May), y/y 6.6% - 5.5%

10:00 Britain, CBI retail sales volume balance (June) +9% +10% +9%

The main currencies at the EU session traded within narrow ranges as there were no important data which could impact the market. The only one exemption was sterling showed rapid raisin after a strong Retails in Britain. Figure exceeded expectations of 5% rise by increasing 9%.

Two-days FOMC meeting starts today. As expected FOMC will hike key refinancing rate from current 5% to 5.25% (Federal Funds 25 years диаграмма Federal Funds 50 years диаграмма). Experts believe USD to continue strengthening: recent figures testify US economy is in a good shape. This emphasizes that the biggest world economy is strong enought to withstand higher rates.

EUR/USD opened $1.2575. In the beginning of session the rate tried $1.2560 then started to retrace due to bids, exposed in area $1.2565/50. Bids are seen on the approach to $1.2550, $1.2530 and $1.2510/00. Offers - $1.2585, larger - on $1.2595/05 and $1.2615/20. Large option barrier is on $1.2670 and $1.2700.

GBP/USD started session $1.8227. At first the rate appeared under pressure and tested support $1.8200 and $1.8180. As a result it slumped to the lows near $1.8162. Strong Retails supported sterling up to $1.8220. Offers $1.8240/65. Bids - $1.8165/50.

USD/JPY opened Y116.28. The most part of session the rate consolidated around Y116.25. Bids near Y116.00/80, Y115.55/50. Offers - Y116.60/90, stops above Y117.00.

Meantime ECB officials continue bolstering speculations on further rates hike in a region. Today Garganas emphasized EU rates remain on historical lows and Sweden Central bank President spoke on possible more hawkish rates boost in EU. At the moment the pivotal catalyst of further market’s moves is going to be the accompanying statement after FOMC meeting. In particular traders will expect hints on the further Fed steps in a monetary policy.