Treasury - Daily Forex for day 02.06.2004

...investors refocused on record-high oil prices, which could undermine the U.S. recovery. The Institute for Supply Management reported its index of manufacturing activity unexpectedly grew to 62.8 in May from 62.4 in April, beating market forecasts for a drop to 62.0. Interestingly, the employment index of the report jumped to the highest level in 31 years. U.S. construction spending also came in above expectations in April, up 1.3%, marking the third record high in a row. Friday's U.S. May payrolls report will be key for Federal Reserve interest rate decision at its meeting on June 29 and 30.

Upbeat investors' mood towards the CEE region boosted the crown to 11-month peaks versus the European common currency on Tuesday. News that most of corporate profits outflow have already been materialized, plus without a larger market impact, provided additional support to the currency.