The euro extended recent gains vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4685 level and was supported around the $1.4560 level. The common currency established another intraday high dating to 18 December 2008 as traders assumed more risk in their portfolio and chased higher-yielding currencies. Data released in the U.S. today saw the August headline producer price index climb 1.7% m/m and off -4.3% y/y, up from the July reading of -0.9% m/m and -6.8%, respectively. The core ex-food and energy component was up 0.2% m/m and 2.3% y/y, up from the prior reading of -0.1% and down from the prior reading of 2.6%, respectively. These data suggest some pricing power may be returning to the wholesale market in the U.S. and could presage a small amount of inflation. Federal Reserve policymakers would likely approve of higher inflation because inflation is now seen as being under target. Other data released in the U.S. today saw August advance retail sales up a stronger-than-expected 2.7%, a steep increase from the revised July print of -0.2%, while the ex-autos component also reversed course and was up 1.1%. Additionally, the September Empire State manufacturing index improved to 18.88 from the prior reading of 12.08 while July business inventories were off 1.0%. The positive tenor to U.S. economic data continues and while it has resulted in a bid in many asset markets, the Federal Reserve is likely to keep interest rates unchanged for quite some time. On the policy front, Group of 20 policymakers will convene in Pittsburgh in a couple of weeks next week and are likely to press for higher capital requirements at many systemically-important banks. In eurozone news, the German ZEW economic expectations index rose to 57.7 in September from 56.1 in August, defying expectations for a stronger print. Also, EMU-16 labour costs were up 4.0% y/y in Q2, an acceleration from +3.6% in Q1. Euro bids are cited around the US$ 1.3900 figure.