European session: USD hold near recent lows [E]

Next data were issued:

09:00 EU PPI, May 0.3% 0,8%

09:00 EU PPI, May, y/y 6.0% 5,4%

On Tuesday the euro rose to a four-week high against the dollar on speculation on faster inflation in Eurozone will make ECB to signal on accelerated pace of interest-rate increases. At least six ECB council members in the past two weeks signaled concerns on  faster economic expansion is stoking inflation. 

Today's PPI data reached 6-years high. Energy prices, which influence on PPI, rose in May on 18.6% compared with the same period last year. However, in coming months the pace of  prices growth will be lower and on Q3 basis the index will be not so high as to the same period in 2005, when oil rose to record. Ex-energy PPI climbed 0.4% in May compared with last month and 2.6% versus the same month year earlier.

But the moderate growth is not enough to take away the concerns on oil prices impact on inflation processes, suggesting the further ECB rates increase. 

EUR/USD remained in a range $1.2780/1.2820.

GBP/USD traded within the limits $1.8420/70.

USD/JPY remained in a range Y114.40/80.

Trades volumes are less than usual, because U.S. markets are closed for 

Independence Day holiday. Trading activity may be small, so the important technical levels may not be broke .