Treasury - Daily Forex for day 03.05.2005

With holidays in Asia and U.K. yesterday, the dollar was little changed against other key world currencies in a quiet session. Soft U.S. factory data had little impact on the trade, with market players awaiting today's interest rate decision by the Federal Reserve as well as its post meeting statement. The Fed is expected to raise interest rates by 25 basis points for the eighth consecutive time. The U.S. Institute for Supply Management reported its manufacturing index dropped to a 21-month low of 53.3 in April from March's 55.2. The market had forecast a dip to 55.0.

The Czech was again driven by regional sentiment on Monday, gaining around 20 hellers versus the euro on the day. The currency shrugged off news that the central state budget swung into a deficit of 22.5 billion crowns for January-April period from a 8.25 billion crown surplus in the first quarter.