Forex. Wednesday results [E]

On Wednesday USD almost reached a weekly high versus the yen and euro after North Korea fired missiles over the Sea of Japan, ignoring calls by countries including Japan, the U.S. and China, and launched seven missiles, including a long-range missile Tapodong 2 which can reach territory of the USA, U.S. officials said.
It bothered investors and led to bullish sentiments on USD, as "safe-heaven" currency.
The euro stayed lower after a separate report showed services in the EU region advanced the most in 6-years. Remind, that manufacturing report showed the fastest growth since August 2000.
Later EU retail sales in May unexpectedly dropped breaking strong analysts forecasts.
World Cup in Germany didnt prompt consumer activity before world superiority, as expected. German sales data appeared the worst in all region. Thus data signal ECB officials should not accelerate rates increase in Eurozone though many economists expect ECB interest rates hike in August on 25 b.p.
The separate report highlighted business confidence in British services in June made worse expected low figures.
British services high activity strengthens the 38-th month successively though June data was less than prior month. Data testifies British services about 70% share of which makes economic ones continues upside pace after Q1 slowdown. Nevertheless, BOE will hardly raise interest rate at July session.
The dollar has sharply rose against the main currencies after a private report bolstered speculation US employment rate faster pace and further Fed rates lift to contain inflation.
More jobs in the economy leaves the door somewhat open for an August rate hike by the Federal Reserve,'' said Kathy Lien, chief Forex currency strategist at Capital Markets LLC in New York. It's all dollar bullish.
ADPs report (Automated Data Processing Inc.), the world's biggest paycheck processor, and Macroeconomic Advisers LLC testified U.S. companies added 368,000 jobs in June. Company representatives stress that there is a 90% correlation between its data and the government's private employment figures. Remind, that it will be published on Friday.
The Commerce Department highlighted May Factory orders rose on 0.7% (versus awaited +0.1%) thus additionally testified US economy is well shaped to withstand one more rates hike in the USA.

EUR/USD fell to $1.2740 after area $1.2830/40. The rate didnt overcome this level and returned $1.2780/80. After that drop continued, as a result low was established $1.2700/10. Significant recoil didnt follow and day closed at $1.2722.
GBP/USD boosted to $1.8480 since morning, and than fell to $1.8400. Bids which placed here caused by return to $1.8470. Then the rate consolidated near $1.8450/70. Later rate continued to decrease and reached support $1.8320. Bids were a reason of insignificant recoil to $1.8340, where trades closed.
USD/JPY after slump to Y114.60 has sharply lifted to Y115.20. After that rate stabilized near Y114.80. Then the rate proceeded the growth and tested Y115.70/80. The rate could not punch this area, but recoil was insignificant also. Day closed on Y115.66.

Some banks has revised upwards their nonfarm payrolls forecasts. Futures market betting 78% FOMC will make an additional rates move to 5.50% at August meeting. The end of June such possibility was 59%. Fed Officials at the latest statement has emphasized that further bank steps will mainly depend on incoming economy data.