Treasury - Daily Forex for day 05.06.2006

The dollar slumped against its major rivals on Friday after much weaker-than-expected U.S. jobs report underpinned speculations that the Federal Reserve might not raise interest rates at its upcoming June 28-29 meeting. The report showed that the economy created 75,000 non-farm jobs in May, coming in well below an average forecast of 175,000 new jobs added.

Following a moderate rise on Friday, the crown turned lower against the euro early this morning on post-election deadlock. The crown slipped to 28.350 to the euro from around 28.200 at the domestic close on Friday. The opposition ODS won the parliamentary election but is unable to form a majority government with the two smaller centre-right parties, as having alltogether 100 seats in 200-seat lower house of parliament.