Treasury - Daily Forex for day 14.07.2005

The U.S. dollar re-entered the upward path against its key rivals on Wednesday after better-than-expected U.S. international trade data and U.S. government budget forecasts eased concerns over so-called twin deficit in the world's largest economy. May foreign trade deficit came in at $55.35 billion, below economists' forecast of a $57 billion gap and down from April's revised $56.9 billion shortfall. In addition to this, the U.S. government cut its fiscal year 2005 budget gap prediction by almost $100 billion in the wake of surprisingly large tax revenues in recent months. The White House now forecasts a deficit of $333 billion for the fiscal year ending September 30. Today, the market will pay attention to U.S. June retail sales and CPI data.

The Czech currency slid to fresh six-week lows against the euro in late Wednesday's session, pulled down by poor regional sentiment. Neither domestic economic data helped the crown, with May industrial output rising by softer-than-expected 4% on a y-o-y basis.