American focus: market awaits FOMC decision [E]

The dollar increased against the euro before Federal Reserve decision on rates. Analysts expect rate will be lifted 17^th time to 5.25%. USD may end this month with gains against the euro, that will be the first time since February after Fed Chairman Ben Bernanke expressed the fears about inflation. Tomorrow Department of Commerce will publish CPI data. Futures showed 100% chance of rate increase today, and the probability of raise in August estimated in 83%

Growth of USD reduced after Department of Commerce issued final estimations of GDP Q1 growth. The pace of economic growth came 5.6%, that higher than preliminary figures 5.3%. However, it coincides with analysts’ forecasts.

EUR can win after today’s report showed reduction of unemployment in Germany on 49,000 in May. Meantime, EU officials continue to hint on further interest rates increase in region.

Stocks on Wall Street extend to trade in a positive area. Analysts assume stock indexes can proceed to regain in case if accompanying statement of Federal Reserve will be the same as previous. Corporate news: Standard Poor's rating agency cut credit rating of Ford Motor to “junk bond”. However, Chairman and CEO Bill Ford in interview for Wall Street Journal, rejected the fears about possible bankruptcy. Although he noticed, that the company will meet with difficulties in the future.