The euro moved higher vis-Ã -vis the U.S. dollar today tested offers around the US$ 1.5470 level and was supported around the $1.5405 level. Liquidity was thin on account of the start of the Easter holiday weekend and liquidity will also be reduced on Easter Monday. The Federal Reserve has confirmed that borrowings this week at its discount window stood at US$ 28.925 billion as of Wednesday, significantly higher than US$ 27 million for the week ending 12 March. The Fed established a new primary dealer credit facility this past weekend and lending totaled US$ 28.8 billion including allocations to Goldman Sachs and Lehman Brothers. Traders are eager to see if there will be more dislocations in the U.S. commercial banking or investment banking sectors. In eurozone news, French consumer spending rose 1.2% m/m and 3.7% y/y in January. Euro bids are cited around the US$ 1.5610 level.
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