Treasury - Daily Forex for day 12.02.2006

The dollar was barely changed versus the euro yesterday, with the market taking little notice of a U.S. 30-year bond auction results and comments from Chicago Federal Reserve Bank President Michael Moskow. Moskow said that U.S. interest rates are in a neutral range and that further increases may be needed. Elsewhere, the Bank of Japan kept its long-standing ultra-easy monetaery policy unchanged, as expected. Today the market will focus on U.S. trade data for December, which are expected to show a slight deterioration in the deficit to $65 billion from a gap of $64.21 billion in November.

The crown firmed against the euro on Thursday, in line with its neighbouring currencies, and supported by fading speculations that the CNB will cut interest rates at the end of February.