The euro came off sharply vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4160 level and was capped around the $1.4305 level. A sharp pullback in U.S. equities lessened demand for higher-yielding assets. Data released today saw the mid-August University of Michigan consumer sentiment index fall to 63.2 from 66.0 in July, below forecasts. Also, the July headline consumer price index met expectations at 0.0% growth, down from the June reading of +0.7%, with the annualized reading off a more than expected -2.1% y/y, lower than the June reading of -1.4% y/y. On a core ex-food and energy basis, July CPI was up 0.1% n/n and 1.5% y/y. Additionally, July industral production rallied 0.5%, up from -0.4% in June, while July capacity utilization improved to 68.5%. Yesterday€™s U.S. retail sales data were ugly and render a €œV-shaped€ recovery unlikely. In eurozone news, July consumer prices wer off 0.7% m/m and 0.7% y/y, a record low and worse than forecast. Yesterday€™s economic growth data, however, were stronger than expected and suggest that Germany and France are out of a technical recession. One-month August 2009 futures implied rates are now at 0.355 with September at 0.39. Euro bids are cited around the US$ 1.3900 figure.