Treasury - Daily Forex for day 11.05.2004

...short-term boost. The Institue for Supply Management's non-manuacturing index jumped to 68.4 in April from 65.8 in March. A consensus forecast had been for a drop to 64.0. A comparable indicator out of the euro zone showed the service sector index edged up to 54.5 in April from 54.4 in March. Today, traders will take a look at ECB's monetary policy meeting, where interest rates are expected to be kept unchanged. In the U.S., jobless claims are expected to come in at 335,000 for the latest week, little changed from previous 338,000 reading, while first-quarter productivity is forecast to have risen by 3.5%.

The Czech crown extended its gains to hit a three-week peak against the euro on Wednesday, helped by bullish sentiment at some other CEE markets. CNB Governor Tuma reiterated that the interest rate hike could come later this year, but the timing was unclear.