Treasury - Daily Forex for day 21.12.2006

The dollar on Wednesday erased some of the losses suffered in the previous session as traders adjusted positions ahead of U.S. economic data to be released later this week. The trading activity was low yesterday but is expected to increase later today when the final reading of U.S. third-quarter GDP growth will be released as well as a report on manufacturing activity in Mid-Atlantic region.

The Czech central bank's seven-member Board voted unanimously to leave the key two-week repo rate unchanged at 2.50% for the third consecutive meeting yesterday, taking into account a sharp fall in inflation and a steep appreciation of domestic currency. The crown soared to a new record peak of 27.410 against the euro on Wednesday, receiving a strong boost from generally bullish investor sentiment towards central European markets.