FXstreet.com (Barcelona) - The euro fell sharply vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.2715 level and was capped around the $1.2900 figure. The markets reacted mostly favourably to President Obama's speech last night and are closely scrutinizing Federal Reserve Chairman Bernanke's testimony before the U.S. House of Representatives this morning.

GCI Financial Team said: The markets are currently focusing on the possibility the government will acquire a 40% stake in Citigroup.

In eurozone news, European Central Bank member Ordonez said the global recovery depends on the U.S.'s response to the crisis and said recent news and data have not been optimistic. Bank of Italy's EuroCoin economic growth indicator for February fell to -0.63% in February from -0.21% in January, indicating the eurozone economy has worsened over the past month.

Euro bids are cited around the US$ 1.2475 level.