Treasury - Daily Forex for day 01.07.2004

...Chicago slumped to 56.4 in June from May's 68.0. It was well below forecasts for the 65.0 reading. U.S. Fed raised rates by expected 25bps, lifting the benchmark fed funds rate to 1.25%. In its post-meeting statement, the bank indicated it would not raise rates aggressively in the future. Earlier in the day, the preliminary estimate of June inflation in the euro zone showed prices rose 2.4% y-o-y after a 2.5% increase in May. The next focus of investors will be June's U.S. jobs report on Friday. Economists expect non-farm payrolls to rise moderately to 250,000 from May's 248,000.

Positive sentiment prevailed at the Czech market yesterday, with the crown being underpinned by boolish regional mood and solid economic growth prospects. Furthermore, President Vaclav Klaus helped reduce investors' fears over future government composition, saying he would not appoint a new cabinet backed by the Communists.