Treasury - Daily Forex for day 22.12.2004

The dollar continued its retreat against the euro on Monday on market positioning ahead of the holidays. A European Commission report which said that the euro was strong but not yet substantially out of line with fundamentals also helped buoyed the single currency. The only U.S. economic report yesterday was largely ignored by the market. The Conference Board reported its index of leading indicators was up 0.2% in November,improving from a downwardly revised 0.4% drop in the previous month.

The Czech currency touched its highest level in more than two-years in idle trade on Monday before retreating later in the session. Central bankers meets tomorrow on monetary policy issues, but no change in interest rates is expected.