Treasury - Daily Forex for day 16.04.2006

The dollar was almost flat against the euro and yen on Thursday with the market activity diminishing ahead of a long Easter weekend. U.S. data published yesterday - March Retail sales and April consumer confidence - provided some support for the dollar and helped lift U.S. Treasury yields above 5% for the first time in nearly four years. Retail sales rose 0.6% last month, slightly above expectations, and February's sales were revised up. The University of Michigan's consumer confidence index rose to 89.2 in April from 88.9 in March, while the market had forecast a milder rise to 89.0 this month.

Weaker investor sentiment toward central European region knocked the crown lower against the euro on Thursday. Economic reports released this morning have negligible impact on the market. March PPI was up 0.1% m/m, slightly below forecasts of a 0.2% monthly increase, while February retail sales shot up 8.0%, well above market expectations for a 4.2% rise.