Treasury - Daily Forex for day 03.09.2007

The dollar slipped against the yen but held ground versus the euro after U.S. President George W. Bush said the government would not bailout speculators hit by the credit crisis. In addition, Fed's chief Ben Bernanke failed to give any hint of the outcome of a bank's policy meeting in September. U.S. economic data published on Friday, however, were dollar-positive. Chicago Purchasing Managers' Index unexpectedly rose to 53.8 in August from July's 53.4. July factory orders soared 3.7%, beating expectations for a 0.8% rise. And finally, the University of Michigan's fell to 83.4 in August from 90.4 in the previous month, but analysts had forecast even a sharper decline to 82.7 for August.

The crown traded in a narrow band near the 27.7 per euro level on Friday, with the market calming down after Thursday's CNB interest rate hike.