Treasury - Daily Forex for day 01.08.2005

The U.S. dollar was little changed against the euro on Friday on the back of mixed economic reports coming from the U.S. Second-quarter gross domestic product growth came in at 3.4% on an annualized basis, as expected, down from a 3.8% pace in the first quarter of 2005. But the inflation indicators in the GDP report pointed to lower risks of price pressures, reducing prospects of higher interest rates. On the positive side, the Chicago Purchasing Managers index rose to 63.5 in July from 53.6 in June, way above market expectation of a 55.5 reading. Finally, the University of Michigan's final July consumer sentiment index grew to 96.5 from 96.0 in the previous month, in line with forecasts.

The Czech crown closed Friday's session almost flat against the euro, with the CNB's policy meeting the day before failing to provide any fresh impetus. The bank left interest rates unchanged at a record low of 1.75%, as expected.