The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.3155 level and was supported around the US$ 1.2985 level. Traders are awaiting the outcome of today€™s Federal Open Market Committee meeting with most traders expecting no dramatic announcements. Fed officials may use the opportunity to expound upon their recently-launched Term Asset-Backed Securities Loan Facility (TALF) program to stimulate consumer and business lending in the asset-backed securities market. Fed officials may also give some colour about the current state of the economy and could indicate that recent economic data suggest there are nascent signs of an economic recovery, notwithstanding the labour market. Data released in the U.S. today saw the Q4 2008 current account deficit narrow to €US$ 132.8 billion between October and December from an upwardly revised deficit of €US$ 181.3 billion in Q3 2008. Also, the February consumer price index rose 0.4% m/m and +0.2% y/y. In eurozone news, the European Union may appropriate an additional ‚¬10 billion in emergency loans available to non-eurozone members. This would be in addition to the ‚¬25 billion facility already in place. Euro bids are cited around the US$ 1.2385 level.
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