Treasury - Daily Forex for day 03.03.2005

The U.S. dollar extended its gains versus the euro in early European trade yesterday, but it eased slightly later in the day after Federal Reserve Chairman Alan Greenspan's speech in the U.S. House of Representatives. Greenspan seemed to be slightly less optimistic on the outlook for the U.S. economy than in his previous congressional testimony as he streesed the need to tackle country's huge fiscal deficit by cutting spending even though the economy was growing at a reasonable good pace. Slightly dampening hopes for a quite impressive payrolls figure on Friday, a U.S. jobs survey on Wednesday revealed an increase in planned cuts last month due to a surge in mergers and acquisitions.

Lacking any important economic and political news, the Czech crown was little changed on Wednesday. It ended the session flat against its main reference currency, the euro, not far from recent 2-1/2-year highs.