Treasury - Daily Forex for day 13.04.2006

The dollar firmed against the euro on Wednesday following better-than-expected U.S. foreign trade data, but it erased most of its gains later on doubts that the improvement would be sustainable. The U.S. government reported the trade deficit narrowed to $65.7 billion in February from a record $68.6 billion, beating economists' forecasts for a $67.5 billion gap. Next Monday's report on foreign capital flows into the United States will show whether the country was able to fix the foreign trade gap by capital inflows in February.

The crown dropped slightly against the euro on Wednesday hand in hand with other regional currencies. February balance of payments data have no substantial impact on the trade.