Treasury - Daily Forex for day 29.08.2006

With London's financial markets closed for a holiday on Monday, the trading activity was fairly low. The dollar weakened moderately versus the euro ahead of Federal Reserve meeting minutes due out this afternoon. The minutes will likely reinforce expectations that the U.S. tightening cycle has terminated. Moreover, markets will also scrutinize the August U.S. jobs report on Friday, as well as the core PCE price index for July due on Thursday. In Europe, the European Central Bank holds a meeting on Thursday, but analysts expect the bank to leave interest rates unchanged at 3%.

The crown closed Monday's trade unchanged at 28.20 against the euro after retreating from an intraday high of 28.135. The market is looking ahead to Thursday's central bank monthly policy meeting where interest rates are widely expected to be kept steady.