Forex. Monday results [E]

On Monday USD rose against the euro and yen on speculation global economy slowdown will urge investors to choose less risky assets denominated in the dollar. Fed higher rates can impact world economy cooling, materials demand drop, reduce export profit and lure investors to sell shares. Growth slowed in the Q2 as consumers spent less because of raising borrowing costs and near-record gasoline prices.
The dollar has more advantageous position in a light of conflict between Lebanon and Israel. On Monday Irael soldiers have entered into South Lebanon in the morning.
The report showed new industrial orders in Eurozone in May gained more than expected. Growth of orders in May compensated orders' reduction in April.
CBI report declared retail sales in Britain in July are raising, but perspectives for coming months became less favorable.
CBI member Lambert said, small rate increase may be necessary in the end of year and Britain economy growth in the second half-year can slowdown.
The yen fell against the dollar on speculations BoJ will cancel interest rate hike.

EUR/USD after testing resistance $1.2700 dropped to support $1.2610. Bids placed here caused a little recoil to $1.2630. Than rate stabilized in a range $1.2615/30. The rate closed trades here.
GBP/USD after slump to $1.8480 rose to $1.8540/50. The rate didn’t overcome this area and stabilized in a range $1.8510/30, where it closed the day.
USD/JPY increased from Y116.10/20 to Y116.80/90 during the trades. Offers placed here contained further rate’s growth and it stabilized in a range Y116.60/80 and closed trades here.

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.