The euro came off sharply vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4045 level and was capped around the $1.4195 level. The common currency extended recent losses on account of stronger than expected U.S. economic data and a pullback in U.S. equity prices. Data released in the U.S. today saw the Federal Reserve Bank of New York€™s Empire State manufacturing index improve to 12.1 from -0.6 in July. Other data saw the August NAHB housing market index print at +18, up from +17 in July, while June net long-term TIC flows printed at US$ 90.7 billion, much stronger than expected and above the revised May print of €US$ 19.4 billion. In contrast, however, total net TIC flows came in at €US$ 31.2 billion, an improvement from the revised €US$ 65.86 billion May print but below the US$ 23.0 billion forecast. Global equity markets were given today after Asian markets suffered a sell-off. The Federal Reserve today extended an emergency program by three to six months called the Term Asset-Backed Securities Loan Facility (TALF) that is designed to cushion the commercial real estate market. In eurozone news, the EMU-16 trade surplus registered a two-year high in June. European Central Bank member Weber reported the German economy is likely to perform better than expected in the third quarter. The ECB today reported the Eurosystem has purchased ‚¬7 billion in covered bonds. Euro bids are cited around the US$ 1.3900 figure.