The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4475 level and was capped around the $1.4555 level. As expected, the European Central Bank kept its main refinancing rate unchanged at 1% today and traders will pay close attention to remarks from ECB President Trichet as to when the central bank may next remove some monetary policy accommodation. Data released in the eurozone today saw November EMU-16 industrial production climb 1.0% m/m, up from -0.3% in October, but fell 7.1% y/y - albeit better than expectations. Other data saw German 2009 consumer price inflation print at its lowest level in twenty years despite the upward revision of +0.8% m/m and +0.9% y/y. Average inflation for 2009 printed at 0.4%, the lowest level since German reunification in 1990 and below the 2008 level of 2.6%. Greece and Ireland potentially face additional credit ratings downgraded on their sovereign debt but the markets are not pricing in the chances of a national default yet. In U.S. news, New York Fed President Dudley reported the U.S. economic recovery is in the middle of the beginnings but said the unemployment rate needs to come down before interest rates are raised. Dudley also indicated he is confident the Fed can manage its balance sheet smoothly, a reference to the fact the Fed will have to begin reducing the size of its balance sheet as policy accommodation is removed. Data released in the U.S. today saw the December import price index print as expected at 0.0% m/m and 8.6% y/y. Also, December advance retail sales were weaker-than-expected at -0.3%, down from the prior reading of +1.8%, while the ex-autos component was off 0.2%, down from the revised 1.9% print. Also, weekly initial jobles claims rose 444,000 while continuing jobless claims fell to 4.596 million in the latest week. November business inventories data will be released later in the North American session. Euro bids are cited around the US$ 1.3885 level.