Forex: Monday results. [E]

The dollar gained the most in two weeks versus the euro on speculation the Federal Reserve will continue to raise interest rates even after weak June Payrolls last Friday.
The EUR dived on speculations its too fast pace versus Japan currency and some how on a data BOJ can reduce rates gap between EU one faster than the ECB.
At the morning machinery orders output fueled speculations BOJ will elevate its borrowing costs this week thus lifted the yen to a 4-week high versus dollar.
The market players are fully priced BOJ will go further recent zero rates and make 25 b.p. move on itтАЩs near meeting July 13-14.
USD pared its decline versus the yen after Prime Minister Junichiro Koizumi said Japan is studying the legitimacy of striking bases in North Korea.
The U.S. currency headed for its first advance since North Korea fired seven missiles in Japan Sea on July 5. Koizumi stressed that Japan needs to make better its safety level after the tests.
France May data on Industrial production appeared stronger than the analytics forecasted. Remind that latest April report testified drop. May lift was mainly based on car-making sector production expand.
The separate report signaled Britain PPI output reached the record gain in June since November 2004. Annual data gain made the 20 months ceiling but didnтАЩt bring much market movements.

EUR/USD after consolidation in a range $1.2790/1.2815 has started to decrease. As a result the rate dropped to $1.2720. The followed recoil was insignificant. Day was closed on $1.2738.
GBP/USD after consolidation in $1.8485/1.8520 has sharply fallen to $1.8370. Bids led to recoil in $1.8420 where trades closed.
USD/JPY after decrease to Y113.40/50 could retrace to Y113.90. Then the rate stabilized near Y113.80 and continued to raise. As a result it could climb Y114.30. The followed recoil was insignificant. Trades closed on Y114.21.

The dollar advanced as interest-rate futures showed an increased probability of another rate lift next month. This time futures signal 65% odds Fed will go further and boost it's key rate to 5.5% at the August meeting. Payrolls output led to bets drop to 60% from high 85%.