European focus: euro trades near 4-week high versus dollar.[E]

The euro traded near a four-week high against the dollar and a record
versus the yen on speculation evidence of faster inflation will lure ECB
to signal an accelerated pace of interest-rate increases.
At least six ECB council members in the past two weeks signaled concern
faster economic expansion is stoking inflation.
Today's PPI data reached 6-years high.
"ECB officials show a very hawkish signal and saying they can move more
quickly and aggressively on monetary policy tightening.". - stresses
Daragh Maher, Calyon."If the hawks are winning the debate the euro may
gain to its highest this year."
ECB council member Nicholas Garganas said June 26 in an interview that
he would not rule out a higher adjustment to rates than 25 b.p.,''
nor quickening the pace of increases from once every quarter. The ECB has
raised rates three times since the start of December, to 2.75 percent.
However, most of economists consider on July 6 ECB won't change the
rate. They also very interest about Trichet speech at traditional press
conference.
``He's likely to send some signals that the ECB is going to hike in
coming months,'' said Lee Wai Tuck, Forecast Singapore Ltd. ``The euro
will likely head toward $1.30.''
Trades volumes are less than usual, because U.S. markets are closed for
Independence Day holiday.