The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4245 level and was supported around the US$ 1.4100 figure. The common currency added on to recent gains and reached its highest level since 29 December 2008. Data released in the U.S. today saw April personal spending decrease 0.1% m/m while April personal income was up 0.5% m/m, an indication that consumption is not keeping up with income. It was also reported that April core U.S. personal consumption expenditures were up 0.3% m/m and 1.9% y/y. Other data saw the U.S. ISM May manufacturing index print at 42.8, up from 40.1 in April. U.S. equity markets were up sharply with the Dow posting more than a 200-point surge through mid-day U.S. trading. In eurozone news, the EMU-16 May manufacturing PMI index improved to 40.7 from 36.8 in April, the largest rise since at least June 1997 but still below the €œboom-or-bust€ 50.0 level, evidencing an ongoing contraction in the sector. Germany€™s PMI manufacturing level printed at a stronger-than-expected 39.6 in May, up from April€™s print of 35.4. The EMU-16 print represented a seven-month high. Other data released today saw April construction spending climb 0.8% m/m. The EMU-16 April unemployment rate will be released tomorrow. Euro bids are cited around the US$ 1.3435 level.
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