Treasury - Daily Forex for day 27.04.2005

The U.S. dollar posted gains on global markets yesterday, boosted by an excelent report that showed U.S. new home sales soared to a record pace in March. The sales of new homes jumped 12.2% to a 1.431 million unit annual rate, beating market forecasts of 1.195 million units. The next move of the dollar will most likely be influenced by U.S. durable goods report due this afternoon and Thursday's U.S. GDP data for the first quarter. Elsewhere, the yen slipped from a recent two-month peak versus the euro and a one-month peak against the dollar after data from Japan showed consumer prices fell in the seventh consecutive year in the 2004-2005 fiscal year, underpining worries of persisting deflation in the country.

The Czech crown was trapped in a narrow range versus the euro in a calm session on Tuesday. The market now focuses on a Thursday meeting of CNB's governing board, which is widely expected to hold interest rates flat. The next step should be a hike late this year or early next year.