The euro moved higher vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4095 level and was supported around the $1.4010 level. Strong gains in U.S. equities markets led to a difficult day for the U.S. dollar as risk appetite expanded and the greenback€™s safe haven appeal diminished. The International Monetary Fund reported recessionary problems in the eurozone are receding. The IMF now foresees a 4.8% decline in gross domestic product in the eurozone this year. Data released in the U.S. today saw weekly initial jobless claims up 25,000 to 584,000 while continuing jobless claims were off 54,000 to 6.197 million. The Fed released its July Beige Book yesterday and reported the recession is easing in most regions of the country, noting €œthe pace of decline has moderated since the last report or that activity has begun to stabilize, albeit at a low level.€ In eurozone news, German July unemployment fell a surprising 6,000 on an adjusted basis and were up 52,000 on a non-adjusted basis, equivalent to 8.2% of the workforce. Other data released today saw German June plant, machinery orders slump 46% y/y. The European Commission reported business and consumer confidence in the eurozone improved in July with the overall Economic Sentiment Indicator rising sharply to an eight-month high of 76.0 from 73.2 in June. Similarly, July industrial confidence improved to -30 from -32 in June and consumer confidence was lifted to -23 from -25. Euro bids are cited around the US$ 1.3900 figure.
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