Treasury - Daily Forex for day 11.12.2006

The dollar surged against the euro in a volatile trade on Friday following the better-than-expected U.S. non-farm payrolls report and remarks from the Treasury Secretary Henry Paulson. The jobs report showed that the U.S. economy created 132,000 jobs in November after a downwardly revised 79,000 gain in October. The analysts had forecast an advance of 110,000 jobs in November. The unemployment rate rose to 4.5% last month from October's 4.4%, in line with expectations. In an interview for CNBC, Paulson said that China needs more foreign exchange flexibility, raising further the volatility on the currency markets.

Improved regional mood pulled the crown higher against the euro on Friday. GDP growth data and the inflation report had little effect on currency trading. Later in the session, the crown shed some of its gains.