American focus: Trichet optimism supported EUR.[E]

Today market was focused mainly on BOE’s MPC and ECB meetings. 

But Central banks left their key rates unchanged- 4.5% and 

2.7%. ECB President Jean-Claude Trichet speech at press-conference became the main catalyst of today's movements. He confirmed the necessity of June8 rate hike. He also repeated his key phrase about the vigilance on price 

stability in a region. Trichet believes rate hikes fuel growth by containing inflation expectations. This bolstered speculations on further ECB rates lift and prospects of EUR advances. 

USD came under pressure versus main currencies on bullish Trichet's comments. Besides EUR gains were limited as market players started doubt after Trichet said he doesn’t what will be next meeting. This year EUR rose 7.7% versus dollar 

on speculations ECB further tightening. Last month  at least six ECB policy makers hinted on rate hike in the future. Optimism rose after June service PMI reached 6-year high. Manufacturing PMI rose to highs since 2000 year. US Service ISM couldn't support USD. June figure declined to 57.0 from 

60.1. 

Japan currency can recoup losses led by North Korea ballistic 

missiles launches. BOJ Chairman Fukui’s speech on Japanese economy expansion can be bullish for yen. His comments bolstered speculations BOJ can lift key rates at 

the meeting next week. Thus yen gains can by limited by fears on further missiles launching by North Korea. Yesterday yen droped to  2 weeks lows after a message that 7 ballistic missiles fell in Japan Sea.  

Wall Street opened in black on Thursday after recent oil drop. Among corporate news should be mentioned that  Openwave Systems informed Q4 loss will come around 13-14 cent per share. Analysts waited for profit. Shares fell 23%. Merrill Lynch downgraded Kraft Foods shares to "neutral" from "buy." Wal-Mart gained after reported June sales rise 1.2%. Costco June sales rose 6%. But Pier 1 reported about decline on 18.4%.