Treasury - Daily Forex for day 16.11.2004

...recent sharp euro appreciation. Otherwise, there was no important data released yesterday. This afternoon, however, Treasury Department is going to publish a report on capital inflows into U.S. assets for September. The figures are expected to show that net inflows lagged behind the deficit on the current account that month, the result that would indicate a weaker dollar.

The Czech currency rebounded from two-week lows against the euro yesterday after the current account data for September showed smaller-than-expected deficit. The gap amounted to 6.3 billion crowns while the market had forecast a 9.8 billion shortfall. The crown also benefited from comments of central banker Michaela Erbenova who said that the planned sale of phone company Cesky Telecom through the stock market could lead to currency appreciation.