European session: USD stabilized ahead US inflation data.[E]

Next data issued:
08:30 UK RPI-X, June , y/y 3.1% 3,0% 2,9%
08:30 UK Retail prices, June, y/y 3.3% 3,0% 3,0%
08:30 UK Retail prices, , June m/m 0.4% 0,2% 0,6%
08:30 UK HICP, June, y/y 2.5% 2,2% 2,2%
08:30 UK HICP, June, m/m 0.3% 0,1% 0,5%
09:00 DE ZEW economic expectations index, June 15.1 35,0 37,8.

Tuesday EU trade flew a little nervous. At first the yen climbed from a
three-month low against the dollar on speculation the fastest economic
growth in China will have a positive impact on Japanese export. But
later issued report testified Germany's ZEW index of institutional and
analyst expectations fell to the lowest since May prior year. Remind that
index showed lower figures every month since it reached a two-year high
in January.
The report bolstered concern that ECB higher borrowing costs are
hurting economy growth.
The separate report signaled U.K. house prices rose in June by the most
in more than two years while April-June 2006 as Royal Institution of
Chartered Surveyors (RICS) informed.
RICS pointed average house prices in April-June lifted to +28 from +21
points in May. The measure, adjusted for seasonal swings, was the
highest since May 2004 when data testified +41 elevation caused by BOE
anxiety. That time the UK Central bank boosted rates to stood real estate
market.
In the second half of trades the dollar could correct morning upside
pace amid market's awaiting on more pivotal data.

EUR/USD after consolidation within the range $1.2520/40 has sharply
dived to $1.2490/00. Bids became the reason of recoil to $1.2550. later
EUR stabilized in a range $1.2530/40.
GBP/USD after some consolidation in a narrow range $1.8190/1.8210
started to increase. As a result the rate could climb resistance $1.8300/10.
But the level appeared strong enough and the rate stabilized in area
$1.8280/90.
USD/JPY dropped to Y116.70, but later could retrace to Y117.10. Left
part of trades the rate consolidated in a range Y116.90/117.05.

The main news today will be a PPI report from US.
The dollar may lose ground before a report on assets inflow in US. Data
will probably signal international investors didn't buy enough U.S.
securities to cover the country's $63.8 billion trade deficit for May.
Forecasts testify overseas assets increased by $56 billion in May,
compared with $46.7 billion in April. To cover US deficiency it is necessary
to involve $2.5 billion per day.