Treasury - Daily Forex for day 12.07.2005

The dolar pared some gains against the euro on Friday after weaker-than-expected U.S. employment report for June. The non-farm payrolls grew by 146,000, less than market forecasts for 188,500 new jobs. On the positive side, however, upward revisions to the April and May jobs numbers to 292,000 and 104,000 increased the two-month count by a solid 44,000. The unemployment rate dipped to 5.0% from 5.1% in the previous month. Therefore, the jobs report has not shifted the outlook for steadily rising U.S. interest rates. The British pound slipped to a new 19-month low against the dollar on a nervousness about the bomb attacks in London and speculation the Bank of England could soon cut interest rates. A slew of U.S. economic reports is going to be published this week, including trade balance on Wednesday and CPI and retail sales figures on Thursday.

The Czech crown rebounded from one-month lows against the euro on Friday, following trends in other currencies of neighbouring central European countries.