Treasury - Daily Forex for day 24.05.2005

The U.S. dollar retreated from 7-month highs against the euro in a technically-driven trade yesterday. However, the sentiment towards the euro has remained weak mainly in the wake of approaching French and Dutch referendums on the European constitution. Today, market participants will take a look at the minutes of the latest Federal Reserve policy meeting, but the statement is expected to bring little surprise. Investors will also be focusing on the release of a key U.S. inflation measure and the first revision of the first quarter U.S. GDP growth later this week.

The Czech crown slid to three-week lows against the euro on Monday, pulled down by poor sentiment towards emerging markets on the back of a strengthening dollar on global markets and uncertainties over the French referendum on EU constitution. The market is also awaiting the monthly meeting of the CNB governing board on Thursday. The vast majority of analysts expect no change in interest rates.