The euro strengthened sharply vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4165 level and was supported around the US$ 1.3925 level. The common currency reached its highest level since 30 December as traders dumped U.S. dollars ahead of the U.S.-Sino summit in China. There is growing concern the U.S. may lose its €œAAA€ credit rating even though Moody€™s Investors Service maintained its credit rating this week. The U.S. government now owes a record US$ 63.8 trillion. Many data were released in the U.S. today. The University of Michigan final May consumer sentiment indicator improved to 68.7, up from 65.1 at the end of April. Also, first quarter gross domestic product contracted 5.7% while the real personal consumption expenditures index was up 1.5%. The 5.7% contraction was better than the 6.3% decline in the fourth quarter. Additionally, the May Chicago PMI fell to 34.9 from 40.1 in April. In eurozone news, French unemployment worsened in April while the May flash eurozone inflation rate was 0.0% y/y, off 0.6% m/m. EMU-16 April private sector loan growth eased to 2.4% from 3.2% in March while the annual M3 money supply growth rate was off to 4.9% in April from 5.0% in March. European Central Bank member Draghi said the chances of eurozone deflation €œnow appear slight.€ Other data saw German April retail sales climb +0.5% m/m and fall 0.8% y/y. Euro bids are cited around the US$ 1.3435 level.
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