American focus: USD keeps its positions [E]

The dollar strengthens its positions against main currencies.

``It is a combination of high yields and Middle East tension that gives the dollar support,'' said Alan Kabbani, a senior currency trader at Wachovia Corp. in Charlotte. ``People want to move their money to the

U.S. to enjoy higher quality assets and higher rates amid global tensions,'' said expert.

Rising rates may slow economies around the world, reducing demand for commodities, curbing export earnings and prompting investors to dump shares. More than a dozen central banks have raised rates in the past month. The price of commodities including gold declined today

Besides, there is serious risk of world's economy slowdown amid toughening of monetary policy some central banks revised global inflation with gain and raw materials fall. It will urge investors to choose reliable assets than more profitable, but risky assets, such as U.S. treasures.

This fact can be a reason of interest to American currency.

Nevertheless, stability of USD strengthening tendency causes some doubts, as economic data which will be published this week can activate speculations on U.S. economy slowdown. It can bring to no expectations of continuation of Fed interest rates hike. Remind, Federal Reserve Chairman Ben Bernanke said, maybe additional measures on toughening of monetary policy won't need for inflation's growth decrease. The result can reach due to economy slowdown in the country.

"If we will see weak Labor market data and customer sentiments, perspective of Fed's pause on interest rate hike will be more possible and sentiments on dollar can be worse", believes Adrian Schmidt, a head of currency strategist in Royal Bank of Scotland Group Plc.

Besides, remind that dollar climbed to important support last week and strengthening of U.S. currency is within the limits of technical correction.

On Monday investors' optimism promoted by M&A deals, both completed and in the works. Futures signals market will open with gains.

Announcements about large acquisitions, positive quarter reports of pharmaceutical companies and regain after strong sales of technological sector last week were main reasons of investors' optimism and caused U.S. stock market gains.