Treasury - Daily Forex for day 06.06.2005

The U.S. dollar returned to the bullish path against the euro on Friday shrugging off disappointing U.S. reports on job growth and sentiment in the service sector. It seems that the euro is still well under pressure due to political instability and economic problems in Europe, while the dollar benefits from steadily rising U.S. interest rates. U.S. jobs report showed the closely-watched non-farm payrolls grew by only 78,000 in May against a rise of 185,000 expected by the market. The unemployment rate dipped to 5.1%. Economists had forecast the rate to hold steady at April's 5.2%. The Institute for Supply Management's non-manuacturing index came in at 58.5 in May, below market expectation of a 60.0 reading.

The Czech crown rose to a two-week high of 30.150 to the euro on Friday amid improving sentiment in central European currency markets and better-than-expected April foreign trade balance. Foreign trade report showed a 5.14 billion crown surplus, beating a zero balance expectation by economists and marking the record y-o-y improvement.