Treasury - Daily Forex for day 20.09.2006

The trading on EUR/USD was quite volatile but within recent ranges on Tuesday influenced by turbulances on a Thai market and economic data coming from euro zone and the U.S. Germany's ZEW investor sentiment index fell to an eight-year low in September, but the U.S. data came in also surprisingly weak. Housing starts tumbled 6% and core producer prices dropped by 0.4% in August, bolstering view that the Federal Reserve would keep interest rates unchanged this afternoon.

The Czech currency was barely changed against the euro yesterday, shrugging off political unrest in Hungary and signals that the euro adoption will have to be delayed. In a joint press conference, Prime Minister Mirek Topolanek and CNB Governor Tuma agreed that it is unrealistic to enter the EMU by 2010 due to poor state of public finances.