Treasury - Daily Forex for day 19.04.2006

The euro surged to a fresh 2006 high of $1.2368 against the dollar in late New York trading on Tuesday after minutes from last month's Federal Reserve meeting and softer-than-expected U.S. economic data suggested that the nearly two-year U.S. tightening cycle may be nearing an end. The core U.S. producer price index rose only 0.1% in March, while the market had expected a 0.2% increase. Record high oil prices and gold at a fresh 25-year peak put an additional pressure on the dollar.

Favourable investor sentiment toward central European economies helped lift the crown as high as 28.515 to the euro on Tuesday. No data are due to be released this week.