The euro moved lower vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3830 level and was capped around the $1.3935 level. Today€™s intraday losses followed yesterday€™s selling pressure and a couple of different factors led to market activity. First, risk aversion remains elevated ahead of the U.S. earnings season with many investors unwilling to chase assets with higher yields. Second, traders believe the Group of Eight€™s communiqué that will follow their meeting in Italy will be long on climate treaty language and short on currency language. There was speculation that China, Russia, or India could press officials to adopt a new international reserve currency and decrease dependence on the U.S. dollar. While this may still remain an agenda for some countries, it does not appear it will be publicly topical at the G8 meeting. To this end, the European Central Bank released a report today that indicates the global economic crisis has left major international currencies €œbroadly unaffected€ and reiterated the U.S. dollar €œhas maintained€¦its status as the most important international currency globally.€ Third, the International Monetary Fund released a report today that indicates the global economic recovery is quite slow. Fourth, ECB member Paramo indicated the ECB will €œmaintain a liquidity policy that ensures all solvent institutions with the right collateral€¦have unlimited access to this liquidity.€ Indications that the ECB will maintain an easy monetary policy have a negative impact on the euro as they suggest policymakers are in no hurry to unwind their monetary stimnuli. Fourth, Q1 GDP was off 2.5% q/q and 4.9% y/y, an indication that EMY-16 economic growth revisions did little to dispel the view of recessionary activity in Q1. Notably, year-over-year growth in eurozone bank loans to the private sector slowed to 1.8% in May from 2.3% in April, the lowest reading since at least 1992. Data released in Germany today saw May industrial output surge a monthly 3.7%, up sharply from April€™s -2.6% contraction. Euro bids are cited around the US$ 1.3435 level.