Treasury - Daily Forex for day 31.10.2006

The dollar was almost steady against the euro and yen on Monday with markets awaiting central banks' meetings in Japan and the eurozone this week. Currencies showed a short-lived reaction to September U.S. personal income and spending report, which suggested that the economy is faring well. Core U.S. personal consumption expenditure price index slowed slightly to 2.4% yoy in September, but still remained above the Fed's 2% comfort level. On a monthly basis, the PCE index rose 0.2% in September, as expected, down from an upwardly revised 0.3% increase in August.

Unlike other currencies in the region, the crown firmed sharply against the euro in a technically-driven trade yesterday.