Treasury - Daily Forex for day 24.07.2007

The U.S. dollar rebounded from a life-time low against the euro on Monday, but still held on the weaker side of a $1.3800 level. Similarly, it touched a new 26-year low versus sterling, before paring some losses later in the session. As the economic data calendar was poor yesterday, the investors looked ahead to U.S. home sales data due on Wednesday and Thursday to see whether U.S. housing market troubles continued deepening or not.

The Czech currency firmed slightly to almost two-month highs against the euro on Monday, helped by expectations that the central bank will tighten monetary policy at its meeting on Thursday. The vast majority of analysts expect the bank to hike the two-week repo rate by 25 bps to 3.0%.