Treasury - Daily Forex for day 14.06.2005

The dollar climbed to nine-month peaks against the euro and the Swiss franc and eight-month highs versus the yen, helped by prospects of more U.S. interest rates hikes after favourable U.S. trade data and upbeat remarks from Fed Chairman Alan Greenspan last week. On the other hand, Europe is suffering from economic weakness and political crisis. In Japan, the economic growth for the first three months of 2005 was revised slightly downwards, to 1.2% from 1.3% originally estimated. U.S. calendar is quite heavy this week, including producer prices, consumer prices, industrial production, net capital inflows and the current account deficit.

The Czech crown dropped slightly versus the euro on Monday towards the 30.0 level, knocked down by weakening Polish zloty. This morning, the market shrugged off a PPI report showing prices in industry fell 0.7% in May from April. Analysts had expected a 0.1% rise.