The euro weakened vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3125 level and was capped around the US$ 1.3270 level. The common currency extended recent losses as traders remained pessimistic about the eurozone economy and reacted to worsening economic data there. Many data were released in the U.S. today. First, the April Philadelphia Fed€™s manufacturing survey weakened for the sixteenth time in the past seventeen months, printing at -24.4 from -35 in March. Second, weekly initial jobless claims fell 53,000 to 610,000 while continuing jobless claims climbed 172,000 to 6.022 million. Third, March housing starts were off 10.8% to an annualized rate of 510,000 while building permits were off 9% to 513,000. The Fed€™s Beige Book yesterday was more optimistic than last month€™s Beige Book and suggested the pace of economic decline may be moderating in parts of the U.S. In eurozone news, EMU-16 industrial production fell 2.3% m/m and 18.4% y/y in February. Additionally, March consumer price inflation growth decelerated an all-time annualized low of +0.6% y/y in March from +1.2% y/y in February € significantly below the European Central Bank€™s 2.0% inflation ceiling target. Most traders believe the ECB will counter these disinflationary pressures by moving interest rates lower to 1.0% in May and adopting a quantitative easing policy that could see the central bank purchase sovereign debt in the secondary market. Euro bids are cited around the US$ 1.3100 figure.