The euro fell vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4615 level and was capped around the $1.4730 level. Technically, today’s intraday high was right around the 38.2% retracement of the move from $1.4365 to $1.4950. Data released in the U.S. today saw January housing starts improve to +0.8% from December’s -14.8% print while January building permits improved to -3.0% from -7.1% in December. Also, the January consumer price index was released and the headline print was up +0.4% m/m and +4.3% y/y with the core reading up 2.5% y/y. These data are above the Fed’s perceived upper limit comfort zone of 2.0%. Elevated inflation readings remain a problem for a proactive, expansionary Fed that is trying to stimulate the economy to counter the housing market recession and reduced final private demand. Data released last night saw the January NAHB homebuilders’ confidence index improve to +20. In eurozone news, traders continue to focus on problems being faced by regional German banks that have significant U.S. sub-prime market exposure. Germany’s state-owned Landesbanks are in trouble and German finance minister Steinbrueck today called for some industry consolidation. Data released in Germany today saw January producer price inflation up 0.8% m/m and 3.3% y/y. Euro bids are cited around the US$ 1.4490 level.