The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4365 level and was supported around the $1.4255 level. The European Central Bank convenes on Thursday and is not expected to change monetary policy at that meeting. The ECB today released a report that notes there is systemic risk in the credit default swaps market because the ten most active counterparties account for up to 72% of default swap exposure surveyed by lenders. Data released in the eurozone today saw the August consumer price index improve to -0.2% from July's -0.7% decline. The decrease in disinflationary pressures suggests inflation may increase in the coming months. Recent economic activity in the eurozone has been on the upswing but there is a sizable chance the recent economic improvement could falter. French finance minister Lagarde was on the wire today saying the economies of the eurozone are stabilizing. In U.S. news, data released in the U.S. today saw the August Chicago PMI index print at 50.0, up from the prior reading of 43.4. Also, the New York NAPM activity improved for the first time in three months in August. Recent economic data in the U.S. have been on the upswing and dealers are interested to see if recent housing and and other economic data can continue the uptrend. Euro bids are cited around the US$ 1.3900 figure.
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