Forex. Thursday results [E]

Thursday was the second day of USD weakening. It was caused by last Fed minutes, according to which ``Many FOMC members noted that significant uncertainty accompanied the appropriate setting of monetary policy and one of them determined decision to lift interest rate as a risk.’’ Also FOMC members noted paces of economy slowdown and impressed anxiety about higher core inflation. However they declared increasing slump allows to contain inflation pressure.
«We got a signal peak of interest rates is almost reached and this fact pointed USD will remain under pressure,’’ said Sabrina Jacobs, Dresdner Kleinwort.
After Bernanke’s comments Fed should be careful to curb interest rate hike, futures market lowered probability’s estimation of borrowing costs increase in August to 5.50%, from 91% to 65%.
Philadelphia Fed index appeared worse than forecast and it didn’t add optimism for USD.
Many news were from Britain yesterday. Net volume borrowing in public sector in June reached the most in this month since 1993, when statistics started.
Britain retail sales in June exceeded forecasts and showed the growth a 5 month successively. Long period of time like this is for the first time since January 2004. These data supported the pound.

EUR/USD after consolidation in s range $1.2590/1.2610 started to grow. As a result rate tested $1.2650. Significant recoil didn’t follow. Day closed in area $1.2620/30.
GBP/USD after consolidation in a range $1.8420/50 began to gain. As a result rate reached $1.8517. Offers placed here caused rebound to $1.8480. Trades closed here.
USD/JPY during all session stays in a rangeY116.60/117.00.

Growth of the yen was limited by a conflict in the Middle East. Israel attacked from air more than 200 targets in Lebanon for last day. Hezbollah at the same time launched 140 missiles as a result civil people suffered.
OECD announcement also prevented the yen’s growth. OECD highlighted in year report BoJ needs to be careful in interest rate increase, as far as deflation isn’t overcome in the country.