European focus: the dollar showed the biggest quarter drop since

The dollar fell, heading for its biggest quarterly loss since 2004,
before government reports that may testify economy slowing growth,
suggesting the Federal Reserve's 17th straight interest-rate upside pace came
closer to the end
The picture roiled after ECB policy makers this week said they may
quicken their pace of rate boosts. The dollar slid yesterday after the Fed
raised its target and said an additional move may be needed'' only if
strong data.
The Fed's statement appeared less hawkish as it was expected,'' said
Marios Maratheftis, Standard Chartered Plc in London. We are once again
entering a dollar downwards trend."
We're seeing a clear sign that the Fed is very close to pausing on its
tightening cycle," said Stephen Koukoulas, TD Securities Ltd. It seems
like USD will suffer more. The euro has a little rose after the report
which has signaled Eurozone business confidence in June has reached a
5-years high.
The ECB might got much favorable position to tighten against Federal
Reserve,' said Sue Trinh, RBC Capital Markets.
At least six ECB policy makers this month signaled a faster pace of
rate boosts in the euro region. Yves Mersch and Nicholas Garganas spoke
the central bank is opened for rates increase more than on a quarter
percent point. It is expected rates will lift to 2.75% on June 6 meeting.
JPMorgan Chase & Co. economists raised their bets ECB will elevate it's
benchmark rate to 3.75% by the end of this year.
The euro pared gains after a government report showed German retail
sales dropped the most in two years in May, crimping optimism about
accelerating growth in the euro-region.
Weak German data were a bit of a surprise," said Takehiko Jimbo,
Mitsubishi UFJ Trust & Banking Co., The report lured euro sales." As he
believes next week EUR/USD will trade in a range $1.2550 - $1.2850.