Treasury - Daily Forex for day 01.06.2005

The U.S. dollar extended its gains against the euro on Tuesday in anticipation of another "No" to the European Union constitution. The Netherlands holds a referendum today and it is widely expected that the constitution will be rejected like in France on Sunday. The markets took little notice of U.S. economic data released yesterday. The Chicago purchasing management index of manufacturing activity came in at 54.1 in May, well below economists' expectations of 62.0. By contrast, the Conference Board's consumer confidence index for May was 102.2, well above forecasts of 96.5. The key U.S. economic data of this week, monthly non-farm payrolls, are due on Friday. The market expects the economy created 185,000 new jobs in May after a 274,000 gain in April.

The Czech crown rebounded from its one-month lows against the euro to rise as high as 30.30 on Tuesday as investors started to buy back central European currencies.