Treasury - Daily Forex for day 16.08.2004

...the trade gap widened to a record $55.8 billion, exceeding forecasts for a $47.0 billion deficit. Adding to the weakness of the dollar, the University of Michigan's preliminary consumer sentiment index dropped to 94.0 in August from July's 96.7. The market had expected the sentiment to improve to 97.5. Finally, U.S. producer prices rose less than expected in July, up 0.1% from June. The economists had predicted the PPI to rise 0.2%. Today the market will look at U.S. Treasury data on capital flows for June to see whether the inflow of foreign capital into the U.S. is able to finance the yawning trade deficit.

The Czech crown regained ground late Friday after drifting lower against the euro in early trade on weak regional sentiment. Industrial producer prices soared 0.8% m-o-m in July, well above expectations for a 0.4% rise, bringing the annual rate to a nine-year high of 7.3%.