The euro moved higher vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4275 level and was supported around the $1.4200 figure. European Central Bank member Bini Smaghi reiterated the central bank expects inflation to remain low over the coming year and will €œdo everything it takes to prevent it from rising.€ He also indicatyed the ECB does not expect EMU-16 growth before the middle of 2010. Notably, EMU-16 GDP growth was -0.1% q/q, up from the record decline of -2.5% in the prior quarter. The euro moved higher partially on a reound in Chinese equity markets as the Shanghai Composite was up 4.5% today following recent flirtations with bear market territory. Other major news today focused on a warning from Germany€™s finance ministry that the economic stabilization may not hold. It was reported last week that German GDP improved unexpectedly in the second quarter. In U.S. news, data released in the U.S. today saw the Philadelphia Fed€™s manufacturing survey improve to 4.2 from -7.5 in July while July leading economic indicators were up 0.6%. Also, weekly initial jobless claims rose to 576,000 from a revised 561,000 and continuing jobless claims printed at 6.241 million, up from a revised 6.239 million. Euro bids are cited around the US$ 1.3900 figure.
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