The euro moved lower vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.3935 level and was capped around the $1.4130 level. The common currency ended higher for the week but gave back some of yesterday€™s gains. Traders cited increasing pessimism about the prospects for an economic recovery in the eurozone. European Central Bank President Trichet bearishly said the eurozone€™s economic situation is still €œdifficult and unpredictable€ but noted the central bank is maintaining price stability despite all of the stimuli in the economy and remaining €œpermanently alert and cautious.€ The euro was also dented by weaker-than-expected April industrial production data that were off 1.9% m/m and 21.6% y/y € the steepest annual decline since at least January 1990. Also, the German May wholesale price indes was up 0.1%. The euro also came off on comments from Canadian finance minister Flaherty who indicated €œmore work (needs) to be done in some of the Europearn countries, with repsect to their banking system.€ In U.S. news, April import prices were up 1.3% m/m, the largest monthly rise since July 2008, and were off 17.6% y/y € the largest decline since at least 1982. Additionally, the mid-June University of Michigan consumer sentiment indicator ticked higher to 69.0 from 68.7. Euro bids are cited around the US$ 1.3435 level.
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