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The latest events that get the USD back to its previous positions enabled the US currency to return all it has lost. The recently issued data about durable goods orders appeared to be quite higher than it was forecasted.

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 sharp fall of the USD in relation to the Euro was caused by the worries concerning the US mortgage market and its consequences for the country economy.

The intention of the US government to provide some emergency assistance to large mortgage companies – Fannie Mae and Freddie Mac caused sharp decrease of the confidence in this market and the hike of the Euro to the point of $1.6038. Members of the market suppose that the assistance to the mortgage companies will be nothing but additional several billions of dollars that will increase the national debt and thus decrease credit rating of the whole country.

The last forex trades showed the further growth of the Euro in relation to the USD after the comments by the European Central Bank official – Lorenzo Bin Smaghi and unexpectedly high level of the German producer prices. Due to his forecasts there will be further growth of the commodity prices and the interest rates will be increased in case other factors will not contribute to the decline of the inflation level.

The growth of the retail sales volume in the UK increased expectations concerning interest rates growth and thus increased the British currency too. According to the data provided by the Office of National Statistics the retail sales reached the highest level throughout the May increasing monthly by 3.5 percent. Such growth was quite unexpected as the forecasts provided by the experts supposed only stable volume of retail sales (with 4.2 percent annual growth) not growing one (8.1 percent annual growth).

While the traders expected the US existing home sales data to be issued the Euro grew a bit in relation to the United States dollar. This growth of the Euro was caused by the opinion that the data from the housing sector will not contribute to any improvement in the US economy. According to Steve Pearson at HBOS the certain decrease of the mortgage applications number and pending home sales reflects the current situation.