Treasury - Daily Forex for day 07.07.2004

...added only 112,000 jobs in June, well below market expectations for a 250,000 gain. May's payrolls were also revised down to 235,000 from previously reported 248,000. U.S. factory orders dropped 0.3% in May after falling a revised 1.1% in April. Durable goods orders, released also on Friday, declined 1.8% in May, coming in again below expectations. Providing further reason to sell the dollar, the Institute for Supply Management reported on Tuesday its non-manufacturing index fell to 59.9 in June from 65.2 in May, while economists had anticipated a 63.0 reading. In the euro zone, German unemployment fell surprisingly in June, for the first time in five months.

The Czech currency firmed moderately versus the euro on Friday, driven largely by technical factors ahead of a four-day break. This morning, the crown surged after May foreign trade data showed a lower-than-expected deficit. The gap totalled 0.9 billion crowns, while the market had forecast a 3.3 billion shortfall.