The euro lost ground vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.3910 level and was capped around the $1.4015 level. The pair came off partially on news that U.S. investment banking giant Goldman Sachs earned a sizable US$ 2.7 billion in the second quarter, beating expectations. Data released in the U.S. today saw the June headline producer price index print a stronger-than-expected 1.8% m/m, up from the prior reading of 0.2%, while the ex-food and energy component was up 0.5%, more-than-expected and above the -0.1% previous print. Also, headline PPI increased to -4.6% from the previous -5.0% reading while the ex-food and energy PPI reading printed at 3.3%, up from the prior reading of 3.0%. Even though these data were higher-than-expected, they will not necessarily translate into higher-than-expected consumer price inflation if businesses are unable to pass along higher input and output costs to consumers. Other data released today saw June overall retail sales climb +0.6% while the ex-autos component was up +0.3%. While these data appear to be strong, much of the second consecutive monthly gain reflected purchases of gasoline and automobiles. In eurozone news, European Central Bank member Mersch reported there are €œnegative effects stemming from excessively low interest rates.€ In contrast, ECB member Hurley noted €œThe pace of global recovery is expected to be gradual and downside risks to the global outlook remain. Policy rates should only be increased once there are clear signs that a sustainable recovery has begun.€ Data released in the eurozone today saw the EMU-16 July ZEW economic expectations index fall to 39.5 from 44.8 in June. Also, EMU-16 industrial production was up 0.5% m/m and was off 17% y/y. Euro bids are cited around the US$ 1.3435 level.