On Monday the dollar rate raised during both European and American sessions after almost week falling.

Traders stopped to sell dollar against Yen after position of Bank of Japan was sounded that interest rates of Bank would not be raised. The Asian currencies also decreased against the dollar after the executive of National Bank of China declared that plans on diversification of currency reserves of China to reduce dollar-share were excessive.

The basic driver of drop in the European currencies against the dollar, in absence of data over the USA, became weak fundamental data over Great Britain.

Data on producer prices showed the minimal rise for last 2 years that raised doubts in investors about expediency of the recent decision of Bank of England to lift the rate.

The producer prices at exit were up 1,7 % y/y, minimally since March, 2004, Office of national statistics informed today. These data are not corrected in view of seasonal factors. Economists expected growth of 1,9 %, according to the average forecast of 28 analysts polled by Bloomberg News agency. The prices for raw material (producer prices at exit) grew in annual calculation 3,8 %, minimally since June, 2004.

However, despite price pressure in a manufacturing industry weakens, consumer prices can grow and it is the most preferable indicator of inflation for the Central Bank.

Inflation of consumer prices remained above a target level of 2 % last five months, and investors expect to see increase of discount rates up to 5,25 % next year as trade with futures shows.

The dollar received support after the publication of the monthly Treasury report in the USA. Data were within the limits of predicted values. Deficit of the budget increased up to $49.3 billion in September, according to survey of analysts deficit should have increased up to $49.0 billion.

First of all traders paid attention to the positive moment in the report: tax receipts in the budget were up 7.4 % in comparison with similar data last year.

However growth of costs exceeded growth of incomes by $71 bln..-military expenses for operations in Iraq and consequences of hurricanes in Gulf of Mexico last year continue to put pressure upon the budget.

However, despite these data market moods remain against the dollar, and rally in the beginning of this week can be considered only as correction of uptrend. While in the beginning week it is necessary to wait for the next block of news and to remain outside the market.

Tomorrow the whole block of news over the USA is expected. First of all it is - Retail Sales, the report of Department of Commerce.

Also one of key indicators of inflation - - PPI (Producer Price Index) is expected, according to the report of the Bureau of Labor statistics, U.S. Department of Labor. Rise of this index will most likely affect positively a dollar exchange rate as growth of inflation within the limits of a controllable corridor is a stimulus for FRS to increase the federal funds rate, and it in turn influences directly on dollar rise. Though, that correlation between a dollar exchange rate and PPI is quite difficult and not so unequivocal.

And 90 minutes later data on Business Inventories are issued.