Treasury - Daily Forex for day 06.10.2004

...was muted reaction to U.S. report on factory orders. Orders dipped 0.1% in August after an upwardly revised 1.7% gain in July. Economists had expected a 0.1% increase in August. The key event of this week will be Friday's release of U.S. non-farm payrolls report for September. The market forecasts a gain of 148,000 jobs compared with August's 144,000. The jobless rate is expected to remain flat at 5.4%. The result is going to largely influence expectations about Fed's monetary steps later in the year. Beside this, traders will be also looking to speeches of Fed Chairman Alan Greenspan, who will deliver his latest views on the U.S. economy on Tuesday and Thursday.

The Czech crown climbed to its highest level against the euro in nearly two weeks on Monday, with mainly technical factors driving the currency. The market will be watching August trade figures tomorrow to see whether strong export growth continues. Analysts expect the trade gap for the month to reach 3.8 billion crowns.