Treasury - Daily Forex for day 20.04.2004

...Economic Committee on Wednesday. His remarks on the U.S. economy and possibly on the interest rate outlook will be closely-watched. Following bullish U.S. jobs and inflation data, market participants are now betting on possibility that the Fed will hike rates sooner rather than later. G7 finance ministers and central bankers meet in Washington later this week, but no change in foreign exchange stance is expected. The dollar also strengthened against the yen, helped by a report that additional bad loans were found at one Japanese bank.

The Czech crown extended its losses against the euro yesterday due to political jitters ahead of the key vote in the parliament. The market worries that the lower house will fail to override a presidential veto of VAT bill, which needs to come in force by May 1, when the country joins the EU.