Treasury - Daily Forex for day 15.05.2005

The dollar extended its gains versus the European single currency, surging to the highest level this year on Thursday after a surprisingly strong U.S. retail sales report. The April sales exploded 1.4% on the month, up from an upwardly revised 0.4% rise in March and above the consensus expectation for a 0.7% increase. In addition, core sales excluding cars rose by a hefty 1.1% in April. Other U.S. economic data released yesterday showed that initial jobless claims climbed to 340,000 in the week ended May 7 from an upwardly revised 336,000 in the prior week. The data were largely ignored by the markets.

Lacking any impetus, the crown was barely changed against the euro yesterday. Today, the crown opened lower, on the weaker side of the 30.0 per euro level. The report showing sligthly softer-than-expected 0.1% monthly rise in April's producer prices had however little impact on the trading.