Treasury - Daily Forex for day 14.11.2005

Profit-taking in the dollars sent the euro slightly higher versus the U.S. currency on Friday, but a widening interest rate differential in favour of the dollar makes analysts expect further euro weakness in the coming months. Friday's calendar was poor on economic data, but this week investors will be awaiting U.S. inflation data, with both the producer price index and cosumer price index for October due. September's U.S. asset flows report from the Treasury Department will also be published this week.

The Czech crown soared to a new two-month high of 29.160 per euro on a large client order on Friday before retreating to 29.250 by the end of the session. This morning, the CSU released a report on October industrial producer prices, which showed that the PPI rose 0.4% m-o-m and 0.3% y-o-y, less than expected.