The euro came off vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4610 level and was capped around the $1.4690 level. Technically, today’s intraday low was right around the 38.2% retracement of the move from $1.4015 to $1.4965. The common currency ceded some of the gains it scored on Friday following the weak U.S. Federal Reserve Bank of New York Empire manufacturing index and University of Michigan consumer sentiment index prints. Liquidity was reduced on account of market holidays in the U.S. and Ontario. Bundesbank’s monthly report indicated The concern with regards to long-term inflation risks, which had previously prompted the ECB Governing Council to withdraw in stages the degree of expansion, remains unchanged in their view. Stability risks are also linked with the robust economy as well as the increasing tensions in labour markets. Notably, EMU-13 harmonized consumer prices were up 2.9% y/y in Q4 and EMU-15 harmonized consumer prices were up 3.2% y/y. The German media reported a major German trade union may call for strikes in the public service sector and seek wage growth of 8%. In U.S. news, fed funds futures are currently pricing in about a 45% chance the Federal Open Market Committee will ease the fed funds target rate by 75bps on 18 March. This week’s housing data will be closely watched by traders. Euro bids are cited around the US$ 1.4490 level.