The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.5730 level and was supported around the $1.5585 level. Stops were reached above the $1.5690 level, representing the 61.8% retracement of the move from $1.5905 to $1.5345. European Central Bank President Trichet today said EMU-15 inflation is likely to remain significantly above 2.0% for most of 2008. Trichet added policymakers remain strongly committed to preventing second-round effects and the materialization of upside risks to price stability over the medium term but conceded economic uncertainty remains unusually high. The common currency moved higher after it was reported that the German Ifo March business climate index improved to 104.8 from 104.1 in February, above forecasts. The business assessment sub-index and the business expectations sub-index both improved. Also, the EMU-15 January current account deficit widened to â‚¬10.6 billion from â‚¬3.5 billion in December. Additionally, the French March business climate indicator improved to 109 while the Italian March business confidence indicator weakened to 89.0. It was also reported that EMU-15 January industrial new orders were up 2.0% m/m and 7.3% y/y. In U.S. news, February durable goods orders fell 1.7% while the ex-transportation component was off 2.6%. Euro bids are cited around the US$ 1.5560 level.
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