The euro ceded sone gains vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4645 level and was capped around the $1.4745 level. The common currency failed to establish another multi-month high again today for the first time since 4 September. The greenback moved higher at the expense of European currencies on speculation that U.K. banking giant Lloyds lacks capital. Three-month U.S. dollar interbank lending rates fell to a record low of 0.289% today meaning Libor is now lower than the yen's and Swiss franc's Libor rates, rendering the U.S. dollar a funding currency for carry trades. Federal Reserve Chairman Bernanke's renomination was made official today by the Obama administration. The Fed is currently devising plans to limit bank employees' pay in an attempt to discourage excessive risk-taking. Data to be released in the U.S. next week include August leading indicators, the September Richmond Fed manufacturing index, and July house prices. In eurozone news, the EMU-16 July current account moved into surplus at €6.6 billion for the for the first time since February 2008, up from June's revised deficit of €4.3 billion. Also, German producer price inflation rose 0.5% m/m and fell 6.9% y/y with the ex-energy component up 0.3% m/m and off 3.4% y/y. Euro bids are cited around the US$ 1.3900 figure.
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