The euro moved sharply higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4200 figure and was supported around the $1.4000 figure. The common currency reached a three-week high following positive news from China€™s manufacturing sector that had traders chasing risk. The dollar has also been dented by China€™s insistence that the International Monetary Fund€™s Special Drawing Rights program be expanded at the expense of dollar hegemony. Chicago Federal Reserve President Evans said Fed policymakers are not currently discussing a timetable for unwinding their massive monetary stimulus, adding the Fed needs to contemplate €œhow (its) balance sheet will evolve under different scenarios.€ Evans also said the economy was €œexperiencing more disinflationary headwinds.€ Similarly, San Francisco Fed President Yellen was on the tape saying it is €œnot outside the realm of possibility€ that U.S. interest rates will stay near zero per cent for several years. Data released in the U.S. today saw the June ISM manufacturing activity index improve to 44.8 from 42.8 in May with both the prices and employment sub-indices improving over May€™s readings. Also, May construction spending was off 0.9%, down from April€™s revised +0.6% improvement. Moreover, ADP reported June private sector jobs growth registered -473,000 last month, worse-than-expected and an indication that tomorrow€™s June non-farm payrolls number could be weaker than forecast. In eurozone news, Germany€™s Economy minister Guttenberg reported Germany isn€™t in a €œwidespread credit squeeze€ but warned difficulties could emerge in 2010. The European Central Bank€™s ‚¬60 billion plan for supporting the covered bond market went live today. Other data saw EMU-16 June manufacturing output moderate for the fourth consecutive month, rising to 42.6 from 40.7 in May but still below the boom-or-bust 50.0 level. Also, German May retail sales were up 0.4% m/m. Euro bids are cited around the US$ 1.3435 level.