Treasury - Daily Forex for day 28.04.2005

Much weaker-than-expected U.S. durable goods report pushed the dollar lower against the euro in early U.S. trade, but later the dollar erased most of the losses on investor perception that the euro zone economy was faring even worse that the U.S. Durable goods orders tumbled 2.8% in March after a downwardly revised 0.2% drop in February. The market had forecast a rise of 0.3% in March. The disappointing report raised concerns about the strength of first-quarter GDP growth in the U.S., due to be released this afternoon.

Driven by investor sentiment towards the central European region, the crown traded weaker against the euro for most of the day on Wednesday before it regained ground later in the session. The Finance Ministry reported its new macroeconomic prognosis, which sees higher economic growth and lower inflation both this year and in 2006 as compared to its previous prediction.