Treasury - Daily Forex for day 03.02.2007

The dollar slid to three-week lows against a basket of major currencies on Thursday after the Institute for Supply Management said the U.S. manufacturing sector in January contracted for the second time in three months. But dollar losses were short-lived as traders then started adjusting their postions in the wake of forthcoming U.S. payrolls report due late on Friday and a G7 meeting in Germany next week. The median forecast for January non-farm payrolls is for a gain of 149,000 after a 167,000 advance in December.

The Czech crown slipped moderately against the euro on Thursday, shedding a part of its sharp gains from previous two sessions. This morning, the crown remained under pressure after CNB minutes from the last monetary policy meeting revealed that some board members did not exclude the possibility of a future interest rate cut.