European session: USD holds gains despite possible rates hike in Europe

Next data issued:
06:00 DE HICP (June) final, y/y 2.0% 2.1% 2.1%
06:00 DE CPI (June) final, y/y 2.0% 2.0% 2.0%
06:00 DE CPI (June) final 0.2% 0.2% 0.2%
06:45 FR HICP (June) preliminary , y/y 2.2% 2.4%
06:45 FR CPI (June) unadjusted preliminary, y/y 1.9% 2.1%
06:45 FR CPI (June) unadjusted preliminary 0.0% 0.4%

USD remained in a former range on EU session. At the beginning of
trades it has slide down versus the yen as Israel bombed Beirut's
international airport in the latest escalation of the conflict in the Middle
East. The yen got an extra support on speculation BOJ will lift its key
rate tomorrow for the first time in six years and China may raise rates
for the second time in two years this week.
Issued government report today showed inflation in Germany, Europe's
largest economy, held at a four- month high in June, adding to evidence
that the ECB will probably take an increasing rate measures.
ECB bulletin reaffirms forecasts. It emphasizes that EU policy makers
continue to exercise a very strong vigilance" on prices jitters to
contain inflation risks not to become the reality.
The editorial article of the bulletin as a whole repeated the ECB
President Jean-Claude Trichet speech on monetary policy, made on the last
week.

EUR/USD after increase in area $1.2720 decreased to $1.2680. Pressure
upon a rate does not weaken. Before the beginning of the American
session EUR stabilized near lows.
GBP/USD after consolidation in a range $1.8330/70 has raised in area
$1.8420. Offers became the reason of recoil to $1.8270. Later the rate
was stabilized in a range $1.8380/90.
USD/JPY after consolidation in a range Y115.20/40 dropped to Y115.00.
But later the rate could climbed it's session highs.

Today's data won't make serious moves. Technical picture will drive
trades.