The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4875 level and was capped around the $1.4760 level. The common currency continues to inch towards the psychologically-important $1.50 figure and the U.S. dollar it now at its weakest level since before the Lehman bankruptcy. Data released in the eurozone today saw French September consumer prices decline 0.2% after climbing 0.5% last month, and were off 0.4% y/y. Also, the German ZEW economic expectations index declined for the first time in four months, falling 1.7 points to 56.0 points. The German media is reporting the German government will revise its latest economic forecast on Friday and an upward revision to a contraction of -4.5% is possible, up from -6.0%. There is speculation the German economy may have grown 1% y/y. Federal Reserve Chairman Bernanke was on the wire last week saying interest rates will need to eventually move higher but most Fed-watchers believe the Fed will keep rates unchanged for several months. Euro bids are cited around the US$ 1.4445 level.
Join the Discussion