Treasury - Daily Forex for day 13.11.2005

The U.S. currency appreciated against the euro and the yen on Thursday after a record U.S. trade deficit failed to turn the already positive sentiment towards the dollar being fed by prospects for continued interest rate tightening. The gap between imports and exports balooned to $66.1 billion in September from revised $59.35 in August. Analysts had forecast a deficit of only $61 billion in September. Later the dollar got an additional support from the University of Michigan November survey which showed the preliminary consumer sentiment index surged to 79.9 from 74.2 in October, exceeding market expectations of a rise to 76.0.

The Czech currency rebounded from one-week lows hit early Thursday to trade firmer against the euro, tracking a rise in Polish zloty and Slovak crown. Today, the market shrugged off a report showing Czech September industrial output rose by 7.1% y-o-y, close to expectations.