Treasury - Daily Forex for day 08.06.2004

...expectations that revised GDP figures for the first quarter due out later this week would confirm economic recovery in Japan. Preliminary first-quarter data showed Japan's economy expanded an annualized 5.6%. Sharp gains in Japanese equities, which reflected a drop in oil prices, also helped the yen.

Again, regional mood was the major driver of the Czech unit yesterday. The crown gained nearly half a percent on the day to hit a new one-year high of 31.21 to the euro. But the market ignored remarks by CNB Vice-Governor Niedermayer that the interest rate hike could be less aggressive or come later if the crown stays firm. Economic data released this morning had little impact on the trading. May CPI was 0.4% m-o-m, below expectations of 0.6%. Unemployment rate fell more-than-expected in May, to 9.9% from 10.2% in the previous month.