Treasury - Daily Forex for day 06.02.2007

Even though the closely-watched non-farm payrolls data released on Friday showed that the U.S. economy added fewer jobs than expected in January, sharp upward revisions to the employment growth in the previous two months helped the dollar reverse its initial losses. The dollar then extended its gains against the euro on Monday helped by better-than-expected activity in the U.S. service sector. The Institute for Supply Management's non-manufacturing index in January rose to its highest level since last May and above market expectations.

The crown strengthened against the euro on Monday, copying the bullish trend on neighbouring markets. December foreign trade data had little impact on the trading, with the trade deficit slightly exceeding market expectations. The gap reached 3.25 billion crowns, while the market had forecast a 2.0 billion crown shortfall.