The euro moved higher vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4150 level and was supported around the $1.4065 level. A move higher in Chinese equities prices and corresponding gains in other equities markets € including U.S. asset markets € propelled the common currency higher. Data released in the eurozone today also pushed the common currency higher. It was reported that the German August ZEW economic sentiment index improved to 56.1, its highest level since April 2006 and above the July reading of 39.5. Stronger-than-expected U.K. July consumer price inflation also led to weakness in the U.S. dollar and a bid tone in the euro. Data released in the U.S. today saw the July headline producer price index off 0.9% m/m, worse than expected and below the June reading of 1.8%, while the ex-food and energy component was off 0.1%, down from +0.5% in June. On an annualized basis, July headline PPI was off 6.8% y/y while the ex-food and energy component was up 2.6% y/y. Other data released today saw July housing starts print at 581,000 from a revised 587,000 in June while July building permits came in at 560,000, down from a revised 570,000 in June. Euro bids are cited around the US$ 1.3900 figure.
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