American focus: dollar retreated from highs after comments by the Fed

The Dollar Index rose to a two-week high as investors fled higher-yielding currencies in favor of the relative safety of dollar-denominated assets.

The U.S. currency rose against the majority of its 16 major counterparts before U.S. reports tomorrow that economists said will show durable-goods orders gained and house prices increased as the Federal Reserve may reduce monetary stimulus. June 25 U.S. Department of Commerce will present the figures on orders for durable goods, which, according to analysts, the rise in May, up 3% compared with April. Expected positive report and the real estate market. According to experts, the April housing price index from the S & P / Case-Shiller will grow by 10.6% compared with a year earlier. These may correspond to the March figures, which showed the highest growth in the last seven years.

In the last hours of the dollar began to fall back from highs against the euro and other higher-yielding currencies after comments from Fed officials. Today in London the speech of President Richard Fisher Federal Reserve Bank of Dallas. Recall that Fisher is one of the most vocal critics of quantitative easing, the central bank. Responding to questions, Fisher said that "it is expedient to reduce pokypki assets" and "tax-perezapystit byudzhetnyyu politiky."

Partly on the rate of the euro / dollar have affected the data for Germany. As it became known that the business sentiment in Germany in June improved, raising hopes for the restoration of sentiment among Europe's largest trading partners. The business confidence index rose a second straight month to 105.9 in June from 105.7 in May, being above its long term average 101 and above expectations of economists. Increasing Ifo index gave relief as uncertain business prospects and reduce exports to the Evrobloka affected by the recession have been a deterrent to corporate investments during the year. Business expectations for the next six months improved to 102.5 in June from 101.6 in May. But about 7,000 managers participating in the monthly Ifo survey were less satisfied with their current business situation sub-index fell to 109.4 from 110.0 in the previous month. Ifo study offers hope that business sentiment also restore the position of the major European trading partners, particularly France and Italy.

The Japanese yen rose against the dollar, although it retreated from earlier reached the maximum values ​​that are likely to be associated with a convincing victory for Japan's ruling coalition in local elections on Sunday, the result of which showed strong support economic recovery policies of Prime Minister Shinzo Abe. Resounding victory in the municipal elections in Tokyo will win the election administration Abe next month in the upper house of parliament. This result will allow the Prime Minister to continue monetary policy, begun in December, on assuming office, which led to a rapid weakening of the yen. In case of victory of the ruling Liberal Democratic Party of Japan and its coalition partners in the elections to the upper house of parliament in July, Abe will have full control of both houses of parliament, which will easily take the necessary legislation to implement the political program of the Prime Minister, including reform the regulatory framework. Experts point out that the news somewhat positive, since winning elections for the upper house will facilitate the government to implement its policies.