The euro appreciated vis-à-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 communiqué 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.