European session: USD strengthens before FOMC meeting [E]

Next data published:

06:00 DE Wholesale sales (May) y/y, real adjusted 6.9% -1.6%

06:00 DE Wholesale sales (May) real adjusted -0.4% 1.8%

06:50 FR GDP (Q1) y/y

06:50 FR GDP (Q1) 0.5% 0.5%

07:55DE Unemployment rate (June) seasonally unadjusted 10.5% 10.8%

07:55DE Unemployment (June) seasonally unadjusted, bln. 4.397 4.535

07:55DE Unemployment rate (June) seasonally adjusted 10.5% 10.8%

07:55DE Unemployment (June) seasonally adjusted 10.9% 11.0%

08:30 UK Consumer credit (May), bln.1.23 0.82

08:30 UK M4 lending (May) final, bln. 17.416.1 16.1

08:30 UK M4 money supply (May) final, y/y 11.7% 11.8% 11.8%

08:30 UK M4 money supply (May) final 0.6% 0.6% 0.6%

USD strengthened a little its position versus main currencies. Nevertheless, trade volumes in recent time are insignificant because of market focuses on data of this week. Remind that FOMC will highlight its decisions about interest rates today. Everyone is fully assured Fed will decide on key rates hike to 25 b.p. Thus the accompaneing statement will be also in focus. Some market players believe in further rates lift acceleration. If the statement will underpin these fears USD can continue boosting.

EUR/USD overcame bottom border of Japan sessions range $1.2535/50 and climbed $1.2518 before it got a support. Bids remained in area $1.2515/00 and in approach to $1.2480. Break starts near $1.2565 and strengthens to $1.2575/80.

GBP/USD remained within the limits $1.8150/80. Bank of England Governor comments about inflation picture invariance in comparison with May, activated pressure upon the pair which absorbed stops located in area $1.8120 and established a session low on $1.8103.

Demand is in area $1.8110/00 and amplifies in approach to $1.8085/80. Offers concentrated on $1.8150/60

USD/JPY remained in a range Y116.35/60. Oil importers' orders placed on Y116.00 -Y115.80. Demand is in area Y115.55/50. Offers located near Y116.80 and Y117.00.

Commerce Department will publish reconsidered estimation of U.S. economy growth in Q1 at 12:30GMT. Economists expected that GDP growth in Q1 will be 5.6%, that exceeded preliminary estimation 5.3%. Strong data can cause insignificant USD strengthen within the limits of former ranges.

It is possible to expect sharp growth of trades volatility after FOMC meeting.