Treasury - Daily Forex for day 08.10.2005

The U.S. currency slumped against the euro yesterday, driven by technical factors, following dollars' buying in several previous sessions. The dollar's fall can also be attributed to investors positioning ahead of closely-watched U.S. non-farm payrolls data for September, which are expected to come in weak due to the impact of Hurricanes Katrina and Rita. The market forecasts the economy lost 143,000 jobs in September after a 169,000 gain in August. The employment figure follows a soft report published on Thursday which showed U.S. initial jobless claims rose to 390,000 in the latest week ended Oct. 1, from an upwardly revised 369,000 in the prior week. In Europe, the European Central Bank and the Bank of England left interest rates unchanged at 2% and 4.5%, respectively.

The Czech crown slipped to a six-week low of 29.780 per euro on Thursday, with investors selling riskier assets on emerging markets.