European session: USD gains [E]

Next data were issued:

08:00 IT HICP (June) final, y/y 2.4% 2.4% 2.4%

08:00 IT CPI (June) final, y/y 2.3% 2.3% 2.3%

08:00 IT CPI (June) final 0.1% 0.1% 0.1%

On Friday USD rose in Europe. The yen fell, as BoJ lifted interest rate for the first time in six years and said it would keep interest rates ``very low'' for some time.
Japan's currency fell to a two-week lows as BoJ Governor Toshihiko Fukui said rates will hold unchanged for the rest of the year. Both the Federal Reserve and the European Central Bank are likely to raise their key rates in near future.

BoJ has been under pressure from officials. Finance Minister Sadakazu Tanigaki said today the bank should support the economy with its monetary policy.
Italy CPI justified forecasts and didn’t influence on the market.

EUR/USD fell during the trade. As a result the rate reached $1.2650. Bids placed here caused recoil to $1.2680, however, later decrease continued. Before U.S. session rate stabilized near $1.2660/70.

GBP/USD stays in former range. During the trade rate fell to $1.8350, however after that came back to $1.8420/30.

USD/JPY after testing Y116.20 came down to Y115.60. Then the rate stabilized in a range Y115.70/80.

Michigan sent. Index will be published today. If forecast will be justified, talks will amplify Fed will lift interest rate to contain inflation on August meeting.

The market awaits Retail Sales today. If data will exceed forecasts, USD continues to strengthen.