Treasury - Daily Forex for day 09.01.2005

The euro extended its retreat against the dollar on Thursday and is currently about five cents below the all-time high of $1.3667 it hit a week ago. Market participants now seem focusing on growth and interest rate differentials which speak well in favour of the United States rather than structural problems in the U.S. economy. Early in the New York session, the market paid little attention to an unexpected surge in last week's U.S. jobless claims. The claims jumped to 364,000, above market expectations of 331,000. Investors are now eagerly awaiting a key U.S. report on payrolls creation due this afternoon.

The Czech currency closed Thursday's trading stronger against the euro, still benefiting from a surprise foreign trade surplus for November released a day before. The crown now seems to be trapped in a range of between 30.30 and 30.60 to the single currency.