Treasury - Daily Forex for day 19.12.2006

The U.S. dollar shed earlier gains against the euro yesterday, but a slightly higher-than-expected U.S. current account deficit had little impact on the trading. The deficit widened to $225.55 billion in Q3 from a revised $217.13 billion in Q2. Analysts had forecast the gap to widen to $225.0 billion from previously reported $218.41 billion in Q2.

The crown retreated from all-time highs against the euro on Monday, two days ahead of monthly central bank meeting, where interest rates are broadly expected to be kept steady. A higher-than-expected 8.6% yoy rise in October retail sales had little effect on the currency market.