Treasury - Daily Forex for day 13.10.2006

The U.S. dollar retreated from multi-month peaks on Thursday after data showed the U.S. trade deficit surprisingly widened in August, while a Federal Reserve Beige Book survey painted a mixed picture of domestic economic growth. The U.S. trade gap rose to a record $69.86 billion from a revised $68 billion the prior month. Economists had forecast the deficit to shrink to $66.7 billion.

The crown fell to a 2-week low of 28.36 to the euro early on Thursday on the back of worsened sentiment toward CE region. Market participants were also worried of a worse-than-expected result of the August balance of payments report due on Friday.