Treasury - Daily Forex for day 28.12.2005

With London financial center closed on Tuesday, the euro was almost flat against the dollar on the day. But the dollar rose against the yen after Japanese data showed that core consumer prices, excluding fresh food prices, rose just 0.1% in November from October, and Japanese unemployment rate increased to 4.6% in seasonally adjusted terms in November. The data confirmed investors' view that Japan will continue near-zero interest rates for a long time to come. This morning the euro soared above $1.19 against the dollar after German GfK consumer sentiment indicator for January jumped to 3.8 from upwardly revised 3.4 in December. The market had forecast a 3.3 reading compared to the originally reported December level of 3.1.

The crown traded slightly firmer against the euro on Tuesday, but was off an all-time high of 28.800 hit last Thursday. The market is lacking any impetus in this holiday period.