The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4675 level and was capped around the $1.4795 level. The common currency pared some intraweek gains following a significant round of intervention from Asian central banks overnight in which the U.S. dollar was lifted higher. Federal Reserve Chairman Bernanke was on the wire overnight saying interest rates will need to eventually move higher but most Fed-watchers believe the Fed will keep rates unchanged for several months. Data released in the U.S. today saw the August trade balance print at -US$ 30.71 billion, lower-than-expected and down from a revised -US$ 31.85 billion. This represented the first time the trade deficit has narrowed in four months. St. Louis Federal Reserve President Bullard reported he does not see many alternatives to the U.S. dollar. Speaking about interest rates, Bullard said the Fed's stimulus programs are creating medium-term inflation risks. The March fed funds futures contract is now indicating traders expect rates will rise to 0.33% by then from the current range of 0% to 0.25%. One week ago, the March contract indicated no rate hike by then. Fed Governor Kohn reported it is important for the Fed to communicate its rate policy to the markets. In eurozone news, Germany's merchandise trade surplus and current account surplus fell unexpectedly in August with the trade surplus lower at €8.1 billion. Also, German final September consumer price inflation was off 0.4% m/m and 0.3% y/y. European Central Bank President Trichet spoke today and said the central bank will need to phase out these measures once the rationale for their adoption fades away and the situation normalizes. He also added the ECB has not changed its view of the economy in the most recent month and predicted the eurozone may have slightly positive eurozone growth in 2010. Euro bids are cited around the US$ 1.4445 level.