The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.3300 figure and was supported around the US$ 1.3110 level. The common currency darted higher following some positive European data and a strong day in the U.S. equity markets on news the Obama administration is extending another US$ 2 billion in loans to General Motors. The Federal Reserve reported the recession and market turbulence have €œsubstantially reduced€ reserves at some of the nineteen largest U.S. banks, noting most banks maintain capital €œwell in excess€ of regulatory standards. The Fed also said the government is prepared to aid U.S. banks that are experiencing problems. The Fed€™s stress tests results of U.S. banks will be released on 4 May. Group of Seven officials convening this weekend will likely not announce any new actions in their communiquÃ© and will likely not include new verbiage on exchange rate. Data released in the U.S. today saw March new home sales decline 0.6% to an annualized 356,000 rate and fall 30.6% y/y. Also, March durable goods orders were off 0.8% with the ex-transportation component off 0.6%. In eurozone news, the IMF called on the ECB to reduce rates further and €œin a timely manner.€ The German Ifo business confidence index improved to 83.7 in April from 82.2 in March. Many economists believe the worst may be behind the German economy but today€™s print remains recessionary. Additionally, French March consumer spending was up 1.1% m/m and 0.6% y/y.
Euro bids are cited around the US$ 1.2765 level.