Forex: Monday results.[E]

On Monday USD could consolidate a little after last week sales resulted 2% dollar drop versus euro. Weak manuf. ISM suspended dollar retracement and brought more speculations on economy growth slowdown and possible pause in Fed tightening.
Economic growth is moderating, the central bank said after lifting the overnight lending rate between banks by a quarter-percentage point to 5.25%. Besides Fed accompanying statement didnтАЩt hint on necessity of further rates lifting and emphasized, that the further actions of the central bank will depend on the economic data. Meantime June ISM data showed decrease to 53.8 from May 54.4.
This time interest-rates futures signal 62% of a chance rates will move further to 5.50%. Such possibility made 83% in the middle of prior week.
EUR hasnt changed mainly after issued June PMI report showed data climbed 6 years high bolstering speculations tighter ECB policy. Index climbed 57.7 from 57 in prior month.
At least six ECB council members in the past two weeks signaled concern faster economic expansion is stoking inflation.
By the results of ECB meeting this Thursday ECB President Jean-Claude Trichet may signal he's ready to raise rates in August at the bank's meeting this week. The ECB has boosted rates three times since December, to 2.75%.
Analytics predict in nearer 3 months ECB will lift itтАЩs key rates to 3% bolstering further move to 3.25% by the end of year.

EUR/USD traded in a range $1.2760/00. Further the rate got some support in area $1.2760 and climbed $1.2800 by the beginning of the American session. But the rate couldnтАЩt hook above the given level thus showed the highest on $1.2820. Trades closed on $1.2790.
GBP/USD reached session high on $1.8484 remained within the limits of $1.8440/60. Stronger than expected PMI. As a result the rate dropped below $1.8400, however, could retrace and climbed $1.84420 by the end of trades.
USD/JPY while retracement could climb Y114.90, before rebound to Y114.60. Trades closed on Y114.75.

The yen pace was limited after the Bank of Japan's quarterly Tankan survey showed Japan's largest companies plan to increase investment at the fastest pace in 16 years.
The yen two-days rally versus dollar brought to the Japanese currency 1.8% more as analytics believe strong Tankan will fuel BOJ to quite zero-point rates.