Treasury - Daily Forex for day 04.05.2004

...Supply Management showed its manufacturing index dropped to 62.4 in April from 62.5 in March, while economists had forecast an increase to 63.0. Later, the dollar regained ground, with market participants turning their attention to Federal Reserve's interest rate decision due late Tuesday. The market expects no change in rates. In the eurozone, Reuters index of manufacturing activity rose to 54.0 in April, the highest level in over three years, from 53.3 in March, but the euro was little changed.

The Czech currency traded in a very narrow band yesterday, ending the session flat against the euro. Traditionally, the crown ignored a report on central state budget performance. The cumulative January-April deficit widened sharply to 38.1 billion crowns from 7.8 billion for Q1, mainly on the back of state contribution to construction savings.