Treasury - Daily Forex for day 03.08.2004

...Supply Management reported its manufacturing index rose, as expected, to 62.0 in July from 61.1 in June. U.S. construction spending unexpectedly dropped by 0.3% in June, but the report was largely ignored. The market's attention now turns to the U.S. jobs report for July, due on Friday, the last key data announcement ahead of Fed's interest rate decision on Aug.10.

The Czech crown rebounded from three-week lows against the euro yesterday on CNB board member Pavel Racocha's remarks that interest rates could rise to 3.5% from current 2.25%, while the crown has the potential to firm to the euro over the coming years. News that three political parties signed a deal to create a new coalition government also gave some boost to the crown.