The euro erased earlier gains vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.4495 level and was capped around the $1.4575 level. Technically, todayâ€™s intraday high was just above the 23.6% retracement of the move from $1.4950 to $1.4440. G7 officials failed to agree on FX issues in Tokyo this weekend and merely reiterated the need to avoid undesirable volatility and excess movements. European officials are said to have wanted to reference the weakness in the U.S. dollar in the G7â€™s communiquÃ© while U.S. officials focused on the possibility of the U.S. avoiding a recession and the problems that persist in the global economy. European Central Bank President Trichet reported the eurozoneâ€™s economic fundamentals are sound and said significant growth should be ongoing. Trichet also said there has not even been an informal discussion at the ECB about cutting interest rates. ECBâ€™s Weber said the eurozone should continue to grow around 2% per year. In U.S. news, Fed Chairman Bernanke and Treasury Secretary Paulson will testify before the Senate on Thursday. Euro bids are cited around the US$ 1.4380 level.
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