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The United States dollar kept its high positions supported by decreasing oil prices and several certain announcements from the Federal Reserve. The oil prices have decrease below the $130 a barrel point and the Charles Plosser at the Fed made his announcement concerning the possible inflation. Due to his words growing inflation could cause the Federal Reserve to increase interest rates before any recovery at the labor and financial markets and this is quite supportive for the USD. Moreover the USD was also supported from the announcement of the Hank Paulson – US Treasury Secretary who said about the importance of the strong currency.

The morning forex trades in Sydney showed unstable United States dollar in relation to major currencies such situation was caused by the more aggressive intentions of the central bank of the country in the process of constraining inflation. The central banks of the US and European countries changed their intentions concerning soon interest rate hikes thus have caused the split among the traders about the currency moves.

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The possibility of the interest rate growth by the European Central Bank in the next month caused the decline of the United States currency throughout the afternoon forex trades in Asia. It is expected that the European Central Bank will raise the interest rate after such intention was expressed by its president with intention to constrain the inflation.

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The United States currency has not almost changed in relation to other currencies throughout morning forex trades in Sydney. Thus the USD has strengthened the highs it has gained after the possibility of the interest rate hikes expressed by the Federal Reserve officials.

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The USD changed slightly throughout the afternoon forex Asian trading session in relation to Euro and Japanese Yen. However it decreased to euro to $1.5597 throughout the night caused by the announcement of the European Central Bank President Jean-Claude Trichet about the possible increase of the interest rate in the next month after the slowing down the inflation trend. According to David Mann at Standard Chartered yesterday’s changes of Euro will be followed by the new numbers concerning unemployment situation today.

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The forthcoming issue of the US economic numbers and new interest rate by European Central Bank contributes to slight change of the USD in relation to the Euro and Japanese Yen throughout the afternoon forex trades in Asia.

The US data to be issued includes the unemployment report for the May and non-manufacturing index.

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The result of morning forex trades in Tokyo was the certain growth of the USD in relation to major currencies. The reason was the support the USD gained from the Japanese investors. However the short-term forecast for the USD is still quite negative due to the decrease of credit rating of Merrill Lynch, Morgan Stanley and Lehman Brothers.

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The United States currency decreased a bit in relation to other major currencies throughout the morning forex trading session in Sydney due to the outlook for the weak US economic data and announcements by the Federal Reserve chairman – Ben Bernanke and the president of European Central Bank – Jean Claude Trichet.

The euro slipped on Friday, relinquishing early gains to hit a two-week low against the dollar after surprisingly weak German retail sales figures added to the view that the euro zone economy may be weakening.

German retail sales unexpectedly fell for the second month in a row in April, suggesting cracks in the region's economy which until now had been resilient to a global slowdown even as inflationary pressures increase.

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The United States currency remained at quite high positions in relation to other currencies throughout the morning Forex trades in Sydney as investors considered the duration of the USD being strong. So the USD was traded at 104.74 yen and the Euro – at $1.5654. The gains of the USD were caused by the positive data provided by the durable goods orders report for the April. As for the new orders for the goods related to durable ones decreased only 0.5 percent throughout the April thus showing the outlook for the 1 percent decline was the wrong one.

The dollar rallied on Thursday, rising to a three-month high against the yen, on data showing the U.S. economy grew in the first quarter faster than previously estimated and as hawkish Federal Reserve comments boosted expectations for an interest rate increase this year.

Dallas Fed President Richard Fisher said on Wednesday the the Fed -- the U.S. central bank -- could increase benchmark rates "sooner rather than later" if inflation expectations worsen. The comments prompted a jump in short-dated U.S. Treasury yields on Thursday.

The morning forex trades in Sydney resulted in strengthening the United States currency in relation to other currencies. The USD maintained the gains it has reached throughout the night after the opinion that it will be oversold this month appeared. Moreover such factors as the growth of the crude oil prices and announcements made by the San Francisco Federal Reserve Bank Chairman Janet Yellen also contributed to the growth of the USD.

The forex trades in Sydney resulted in certain decrease of the USD caused by the intention of the traders to make some changes after the UK and US markets will reopen in Tuesday. So the morning USD rate was at 103.16 yen and the Euro at $1.5787. According to the currency strategist at NAB Capital Markets – John Kyriakopoulos – the long holidays in the UK and US will not cause any significant changes. The last week stagflation trend will have its impact this week also and the crude oil price will remain the main factor defining the currencies exchange rates.

The issue of the Federal Reserve last meeting minutes has caused certain growth of the US dollar in relation to main currencies throughout Forex trades. However the forecasts say that the current economic numbers and high commodity prices will contribute to the USD rate again. The United States currency was the reason of some decrease at the equity markets accompanied by the concerns of the traders about the growing inflation and slowing economic growth.

The results of the Forex trades were not bad one for the United States currency. It has increased a bit after the issue of the major economic indices that have shown the possibility of ceasing any recession trend of the US economy. The outlook for the economic activity provided by the NY Conference Board increased by 0.1 percent throughout the April and by the same number in March too. However the Board suggests there could be a certain decrease in the future.