The euro lost ground vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3880 level and was capped around the $1.4030 level. The common currency failed to extend yesterday€™s gains as U.S. economic data released today were on the weak side, reinforcing the view the economic recovery is lagging. The big driver was a considerably weaker-than-expected July University of Michigan consumer sentiment number that printed at 64.6, down from 70.8 in June and far below estimates. Also, June import prices were higher-than-expected, up 3.2% m/m and -17.4% y/y Also, the May trade balance printed at €US$ 26.0 billion, up from a revised €US$ 28.8 billion. Federal Reserve Vice Chairman Kohn warned that legislative plans to audit the Fed€™s monetary policmaking could €œcast a chill€ on the central bank€™s interest rate deliverations. Minneapolis Federal Reserve President Stern optimistically reported €œThere now are in fact positive signs of stabilization in consumer spending, manufacturing activity, and various measures of residential real estate activity, including the volume of home sales and starts of single-family units. The first stage of economic recovery is close at hand€ even though the labour market €œcontinues to deteriorate.€ In eurozone news, the German wholesale price index was up 0.9% m/m and off 8.8% y/y. Euro bids are cited around the US$ 1.3435 level.