The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3475 level and was capped around the US$ 1.3675 level. The big news in the market remains a growing chorus of countries that suggest a new international reserve currency be created € possibly in concert with the International Monetary Fund € to counter the U.S. dollar€™s traditional role. People€™s Bank of China Governor Zhou has put forth this proposal and Russia has put forth a similar proposal. Any indication that this plan could gain traction with or without the Group of Twenty€™s involvement could be U.S. dollar negative. In eurozone news, Bank of Italy official Panetta reported €œthe risks of a deflationary phase are intensifying€ in the eurozone. Germany€™s BGA Group said German exports may decline by up to 15% in 2009. Data released in the eurozone today saw the January EMU-16 current account deficit print at -‚¬12.7 billion, worse than December€™s revised -‚¬7.6 billion deficit. Also, German March manufacturing PMI rose to 32.4 from 32.1 in February with the PMI services index at 41.7 with while EMU-16 February manufacturing PMI rose to 34 with the services index higher at 40.1. Similarly, the French manufacturing PMI printed at 36.3 and it was also reported that French February consumer spending was off 2.0% m/m and 2.0% y/y. In U.S. news, the March Richmond Fed manufacturing index improved to -20 from -51 in February. Also, Redbook retail slaes were flat m/m for the first three weeks of March. Euro bids are cited around the US$ 1.2385 level.