Treasury - Daily Forex for day 13.07.2006

The dollar experienced broad gains on Wednesday after a report showed the U.S. trade deficit widened less than expected in May. In fact, it expanded to $63.84 billion from a downwardly revised $63.34 billion in April. The market had forecast a gap of $64.90 billion. The dollar also firmed against the yen after Japanese currency was hit by comments from Japanese finance minister Sadakazu Tanikagi who raised concerns that the Bank of Japan might not raise rates on Friday as much as initially thought.

Czech crown weakened against the euro on Wednesday as investors sold regional currencies, leading the Slovak central bank to intervene in favour of its currency. The crown ignored data released this morning showing May industrial output jumped 12.2% yoy, above market expectations for an 8% increase.