Forex: Wednesday results.[E]

The main currencies traded within rather narrow ranges as there were no important data which could impact some moves. The only one exemption showed sterling by its rapid raising after a strong Retail sales in Britain. Figures show exceeding expectations on a 4 % June Retails lifted on 9% as May data also.
The rate of euro particularly didnt reacted on GfK report, which testified the growth of German Consumer Confidence to a 5-year peak. It strengthens the probability of further interest rate increase in Eurozone. Ifo Institute declared business confidence index climbed to the highest level since February 1991.
This day starts a two-days FOMC meeting. It is expected FOMC decision to move its key refinancing rate from current 5% to 5.25%.
USD strengthened on a positive data on US economy picture that still remains in a good shape to withstand higher rates. The extra fact for the dollar gains was held on speculations rates hike can impact negatively on GDP expansion.
Secondary housing market sales in May showed a modest drop and exceeding expectations Consumer Confidence for the same period.
Besides there are serious bases to believe, that on Thursday US Commerce Department will reconsider its Q1 GDP estimation with increase 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%.
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.

EUR/USD opened on $1.2575. The rate started with $1.2560 probe, however dropped later. As a result support $1.2520 was tested. Then small recoil has followed, and day was closed on $1.2547.
GBP/USD began on $1.8227. In the beginning of session the rate has appeared under pressure, and probed support on $1.8200 and $1.8180. As a result the rate dived to the low on $1.8160. The strong Retails supported rate and sterling retraced up to $1.8220. Offers in the given area became the reason of decrease to $1.8140. But the rate couldnт??t take this level thus the day was closed in area $1.8180.
USD/JPY almost all day long the consolidated near Y116.25. But at the eve it could pick up and closed on Y116.47.

The yen may a little slide down on speculations Bank of Japan Governor Toshihiko Fukui should resign. Fukui investment a Yoshiaki Murakami fund, who has been indicted for insider trading.
Japanese lawmakers pressure upon Fukui can delay further move from zero-percent rates policy. Four opposition parties on June 24 issued a joint call for his resignation. The 67% of surveyed people agreed such act.
Besides the Chief Cabinet Secretary Shinzo Abe today reiterated that Fukui should serve out his five-year term, which ends in March 2008.