European session: Investors believe in dollar.[E]

Next data issued:
09:00 EU Industrial production, May , y/y 4.9% 3,9% 1,9%
09:00 EU Industrial production, May, m/m 1.6% 1,3% -0,6%
09:00 EU Harmonized CPI ex EFAT, June, y/y 1.4% 1,3%
09:00 EU Harmonized CPI, June, final, y/y 2.5% 2,5% 2,5%
09:00 EU Harmonized CPI, June, final, m/m 0.1% 0,1% 0,3%

At the EU trades on Monday the dollar lifted to almost three months
high against the yen and gained versus the euro on speculation increased
violence in the Middle East will stoke demand for assets denominated in
the U.S. currency. Current situation lures investors to look on USD as
a safe-heaven currency.
Issued report testified EU inflation remains still above the ECB 2%
target rate ceiling in June at 2.5%. This boosts bets ECB will go further
tightening.
The separate report showed Eurozone industrial production extremely
lifted on 1.6% in May. Annual pace made the most advance since January
2001. This year hike mainly depend on high Durable goods demand.

EUR/USD after consolidation in a range $1.2620/35 has sharply decreased
to $1.2520/30. Bids became the reason of recoil to $1.2550. Then the
rate was stabilized near session lows. GBP/USD after some consolidation
within the range $1.8350/70 started to drop. As a result the rate passed
the last week range and established a low on $1.8189. Bids suspended
drop, but recoil hasn't followed. The sterling stabilized in a range
$1.8190/1.8210.
USD/JPY climbed Y117.10/20. Further recoil didn't followed and before
the American session the rate stabilized near Y117.00.

The US will publish it's industrial sector outlook data. (NY manuf.
Index диаграмма и Ind. Product. диаграмма). Strong reports will bolster
bets FED continue higher rates policy.
The U.S. currency may be further boosted amid anticipation Fed Chairman
Ben S. Bernanke will tell Congress this week that inflation is
accelerating fast enough to urge further interest-rate lift. Thus the
deferential gap in rates continues to lure market intention boosting USD gains.