Treasury - Daily Forex for day 05.12.2004

...gold climbed to a 16-year high above $455 per ounce. The Institute for Supply Management's report came in above expectations, but the dollar took little notice of it. The ISM's manufacturing activity index grew to 57.8 in November, above a reading of 57.0 expected by the market, from October's 56.8. The next investors' focus will be tomorrow's U.S. jobs report for November.

The Czech crown rose to new two-year highs versus the euro on Wednesday before moving slightly down on news that the government agreed to sell the state stake in Cesky Telecom to a strategic partner. Only if this sale fails, the government will place Telecom's shares on the stock market. Finance Minister Bohuslav Sobotka reiterated that the government would fulfil its agreement with the CNB, which should prevent foreign currency inflows collected by the state from boosting the crown.