The euro gained ground vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4165 level and was supported around the $1.4055 level. The dollar was given today after J.P. Morgan Chase reported stronger-than-expected second quarter earnings results of US$ 2.72 in net income, equivalent to 28 cents per share. Modest gains in U.S. equities markets also resulted in further pressure on the dollar on the premise that global risk appetites are improving. Traders are also digesting market chatter that CIT Group may file for bankruptcy following an apparent decision by the Obama administration that it is not going to bail out the commercial lender. U.S. Treasury Secretart Geithner spoke optimistically about U.S. credit and financial markets, reporting €œWe're seeing life start to come back into these markets that basically shut down at the end of last year. We're going to make sure that we do enough to help reinforce and sustain that process. Data released in the U.S. today saw the July Philadelphia Fed manufacturing survey decline to -7.5 from -2.2 in June. In eurozone news, U.S. and French officials are trying to work out some disagreements regarding the implementation of Basel II Capital Accord revisions. European Central Bank official Constancio today indicated some banks in some eurozone counties will need more capital and he added €œdoubts remain€ about where the capital will come from. He also added €œserious aspects€ of the financial crisis have stabilized. The ECB is currently fighting an Italian initiative to tax Bank of Italy€™s gold reserves. Data released in the eurozone saw June consumer prices up 0.2% m/m and down 0.1% y/y with core CPI up 1.4% y/y. Euro bids are cited around the US$ 1.3435 level.