FXstreet.com (Barcelona) - The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2830 level and was supported around the $1.2660 level. Traders paid close attention to testimony from Federal Reserve Chairman Bernanke who reported the economy is suffering a severe contraction.

In eurozone news, French President Sarkozy warned the banking crisis in central and Eastern Europe will probably worsen. EMU-15 December new industrial orders were off 5.2% m/m and 22.3% y/y. Also, it was reported that the German Ifo business climate index fell to 82.6 from 83.0 in January.

GCI Financial Team said: Euro bids are cited around the US$ 1.2475 level.