European focus: Trichet can confirm his last week hints.[E]

The yen may rise amid mounting speculation the BOJ will raise interest
rates this week.
BOJ can finally bring to an end five years zero interest rates on
Friday and bolster yen two weeks pace versus the dollar.
It will be a pivotal point when the BOJ finally raises interest
rates," said Masafumi Yamamoto, Nikko Citigroup Ltd. Overseas investors may
believe the Japanese currency will go higher from that day on, urging
yen buying." The yen will move in a range Y113 - Y115 this week, the
analytic said. The Federal Reserve U.S. interest rates hike by a quarter
point to 5.50% in August will be the last for this year, while the BOJ
may lift rates in July and December, he said.
Yen gains may be limited after Japanese Prime Minister Junichiro
Koizumi said today that he wants a quick decision on sanctions against North
Korea, which fired seven missiles into the Sea of Japan on July 5.
ECB President Jean-Claude Trichet will speak today at 13:30 GMT urging
some new moves on a euro charts.
A German government report earlier showed wholesale prices rose at the
fastest pace in six years in June.
Some traders are putting bets Trichet will today suggest that policy
makers will raise interest rates next month. Trichet last week declared
his strong vigilance" against inflation.
We would expect that Trichet will today confirm what he hinted
extremely strongly last week, that an Aug. 3 rate hike is on the cards," said
Sean Callow, Westpac Banking Corp.. The euro may rise to $1.2800
against in a daily estimations.
European Union Monetary Affairs Commissioner Joaquin Almunia yesterday
eve said after a meeting of finance ministers from the euro region in
Brussels that the region needs tighter policies to contain inflation
and accelerate economic growth.