Treasury - Daily Forex for day 01.06.2004

...recorded solid gains versus both currencies. Reviewing its global equity indices, Morgan Stanley Capital International lifted weighting for Japan. This combined with a rise in the May Reuters/Nomura/JMMA purchasing managers' index gave traders an impulse to buy the yen. The PMI rose to 56.2 from 55.9 in April. Furthermore, Japan's Finance Ministry reported it had not carried out yen-selling intervention for second consecutive month in May.

With markets in London and other west European economies closed for a holiday on Monday, the crown was trapped in an unusually tight range against the euro, near its 8-month highs. First-quarter nominal wages jumped 8.8% y-o-y, while real wages were up a robust 6.4%.