The euro came off vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.4685 level and was capped around the $1.4775 level. Technically, todayâ€™s intraday high and low were right around the 23.6% and 38.2% retracements of the move from $1.4310 to $1.4920. European Central Bank member Weber dented rate cut expectations saying there are wishful thinking. All eyes will be on the Federal Open Market Committee next week as policymakers likely deliberate between a 50bps easing and a 75bps easing following Tuesdayâ€™s surprise 75bps intermeeting easing. Financial markets have somewhat stabilized since the Fedâ€™s cut and traders will closely monitor upcoming data including consumer confidence, new home sales, and durable goods orders. ECB member Stark said he is not happy with inflation but conceded the rise may be temporary. Data released in Germany today saw the February GfK consumer climate index at 4.5%, unchanged from Januaryâ€™s level, while German December import prices were off 0.1% m/m and up 3.7% y/y. Euro bids are cited around the US$ 1.4355 level.
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