Treasury - Daily Forex for day 20.06.2005

The U.S. dollar slumped against the euro on Friday amid a report showing U.S. current account deficit widened to a new record. The gap for the first quarter amounted to $195.1 billion or 6.4% of GDP, versus the market forecasts for the $190.0 billion shortfall. The deficit in the fourth quarter of last year was also revised to a wider $188.36 billion. On the other hand, the dollar failed to benefit from an upbeat University of Michigan's consumer sentiment report, which showed the preliminary June index rose to 94.8 from 86.9 in May. The market had forecast a reading of 89.0.

The Czech crown closed Friday's trade almost flat against the euro after hitting new six-week highs earlier in the session. This week's data calendar is very light, so we expect the crown to be primarily driven by regional developments.