European session: USD consolidates ahead the news [E]

Next data were issued: 

06:00 DE Wholesale prices (June) 0.5% 0.7% 

06:00 DE Wholesale prices (June), y/y 3.3% 5.0% 

08:00 IT Industrial production (May) adjusted 0.9% -1.0% 

08:00 IT Industrial production (May) adjusted, y/y 2.9% -2.6% 

08:30 UK Trade in goods (May), bln. -6.75 -5.75 

08:30 UK Non-EU trade (May), bln. -3.72 -3.37 

On Tuesday USD remained in narrow 

ranges versus main currencies in Europe. The market awaits news: U.S. Trade Balance and BoJ decision. 

According to forecasts, trade balance will show deficit widening. It may bring the US structural problems in market focus and become the reason of USD sales. 

BoJ will raise the rate this week for the first time for 6 years, according to forecasts. It can lead to the yen appreciation. However, yesterday 

Japan officials hinted, the Bank should not hurry up with rate lift as it may slowdown the economy growth.

Besides, the prime minister of Japan Junichiro Koizumi said he wants an immediate decision about sanctions against North Korea which launched 7 missiles to Japan Sea on July 5. 

The report showed, deficit of foreign trade of France reduced in May. Deficit slump caused by export growth of food and equipment from France and unveiled effect from a proceeding import growth of consumer goods.

Britain situation with other countries sharply worsened in May. 

According to national statistics office trade deficit with 

other world's countries rose to the most since February. 

Widening of deficit was promoted by fuel trade, oil import gained because of decrease in manufacture and strikes. The pound has sharply decreased 

after this report, but it didn't leave a range.

EUR/USD after consolidation in a range $1.2735/45 fell to $1.2700. Bids, placed here, were a reason of rate's return to $1.2750. Later the euro stabilized in morning range again. 

GBP/USD after Britain news decreased from $1.8450 to $1.8365. However, 

it couldn't take overthe support and returned to $1.8410. Before American session  the pound stabilized near $1.8400.

USD/JPY remained in a range Y113.90/114.40. 

There are no important report today, but ECB President Jeane-Claude Trichet speech at 13:30 GMT may influence on euro. According to analysts, today Trichet will speak about an opportunity of rate increase next 

month. Nevertheless, currencies may not leave former  ranges.