American focus: the dollar continue strengthening before FOMC meeting.[E]

The dollar gained versus the euro on speculation the Federal Reserve will raise interest rates a 17th straight time tomorrow and signal in an accompanying statement that additional increases may be needed to contain inflation. The U.S. currency has risen 3.3% against the yen and 2.3% versus the euro since the end of May as Fed officials emphasized concern on main inflation data growth and hinted on necessity of further rate increase. (CPI core диаграмма PPI core диаграмма). The additional fact for USD strengthening gave a positive data on US economy picture that still remains in a good shape to withstand higher rates.

Existing home sales in May showed a modest drop and Consumer Confidence exceeded expectations for the same period. Consum. Confidence диаграмма

Besides there are serious bases to believe, that on Thursday US Commerce Department will reconsider it's Q1 GDP estimation with increase GDP q/q диаграмма that can appear the highest for the last 4 years. Economists expect the U.S. GDP expanded at an annual rate of 5.6% in the Q1, higher than the tentative estimation 5.3%. «Market players are getting a little bit more bullish on the dollar ahead FOMC meeting,'' said Samarjit Shankar, in Boston Mellon Financial Corp. The Fed may emphasize remaining vigilant on inflation. Interest-rate expectations underpin the dollar." Interest-rate futures show the market is fully priced the Fed will lift the main rate a quarter-percentage point to 5.25% tomorrow. The futures indicate an 80% chance of another quarter-point move at an August 8 meeting, that estimated a zero percent odds at the start of the month. Federal Funds 25 years диаграмма

US main stock-indexes trade without certain tendency as investors hold moves ahead FOMC decision. Such tendency will likely continue till tomorrow eve.