The euro strengthened vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4045 level and was supported around the US$ 1.3955 level. Liqudity was very thin today as both the U.K. and U.S. markets were closed for market holidays. Data released in Germany today saw the May Ifo business sentiment index print at 84.2, above April€™s print of 83.7 but shy of expectations. The expectations sub-index improved to 85.9 while the current condtions sub-index worsened to 82.5, a new cyclical trough. The greenback has been pressured significantly over the past couple of weeks. There is growing concern that the U.S. may lose its €œAAA€ credit rating and that the U.S. dollar could depreciate significantly as a result. Many U.S. data will be released tomorrow including Case-Shiller house price data and consumer confidence numbers. Euro bids are cited around the US$ 1.3435 level.
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