The euro slumped vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5725 level and was capped around the $1.5845 level. The common currency consolidated some of yesterday’s gains. Data released in the U.S. today saw Q4 gross domestic product increase at an annualized 0.6% rate, down from 4.9% in Q3. Also, the GDP price consumption expenditures measure of inflation saw price increases of 3.9% in Q4, up from Q3’s pace of 1.8%, while core prices were up 2.5%, higher than Q3’s 2.0% growth rate. The Federal Reserve’s perceived upper end comfort zone for core inflation is 2.0%. Other data released today saw weekly initial jobless claims fall 9,000 to 366,000 while continuing jobless claims fell 5,000 to 2.845 million. Chicago Fed President Evans yesterday said the current interest rate policy is accommodative and said last year’s rate cuts are probably just beginning to be felt. Evans intimated there may already be enough stimuli in the monetary pipeline. In eurozone news, the European Central Bank may launch a quick tender tomorrow to inject liquidity into the money markets and try to bring down interbank lending rates. Banks around the world are hording cash, fearful that more financial institutions may be troubled but aren’t yet reporting the extent of their credit problems. Three-month Euribor rates were 4.728% today, up from 4.386% one month ago. ECB member Quaden reported The problem is not the toolbox of the ECB. The key problem is the lack of confidence among financial institutions. And the solution is early and transparent disclosure. Speaking about foreign exchange rates, Quaden added …the excessive volatility of the foreign exchange market is clearly a negative risk. Data released in Germany today saw the GfK April consumer climate index improve to 4.6 from 4.5 in March. Euro bids are cited around the US$ 1.5560 level.