The euro moved marginally lower vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3925 level and was capped around the $1.4025 level. Liquidity was light ahead of the long Independence Day holiday weekend. The European Central Bank voted yesterday to keep monetary policy unchanged and ECB President Trichet€™s remarks indicate interest rates may be on hold for some time in the eurozone. Commercial banks€™ overnight deposits at the ECB rose to a new 5 ½-month high overnight as banks hoarded most of last week€™s injection of liquidity by the ECB that amounted to nearly ‚¬500 billion. Some ‚¬403.3 billion was on deposit overnight at the ECB, suggesting banks are awash in liquidity but are reluctant to lend. Data released in the eurozone today saw May retail sales fall 0.4% and 3.3% y/y, worse-than-expected, while the June EMU-16 purchasing managers€™ composite survey improved to 44.6 from 44.0 in May € albeit still a contraction below the €œboom-or-bust€ 50.0 level. ECB member Noyer said policymakers should remain focused on keeping prices stable. In U.S. news, the markets will reopen on Monday after the holiday weekend. Yesterday€™s U.S. economic data saw June non-farm payrolls collapse by a worse-than-expected 467,000 with the unemployment rate now at 9.5%. Many economists believe the unemployment rate could reach the psychologically-important 10.0% level during the current economic contraction. Euro bids are cited around the US$ 1.3435 level.