The euro depreciated sharply vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4260 level and was capped around the $1.4415 level. U.S. markets reopened after yesterday's market holiday and liquidity returned to normal levels. Data released in the eurozone today saw the German January ZEW economic sentiment index slip to 47.2 from 50.4 in December, lower than forecast and the fourth consecutive decline in expectations. The common currency moved lower on these data as recent German economic data had been stronger-than-expected. German finance minister Schaeuble said the government will draft legislation to reform supervision, remuneration, and restructuring for the financial sector to help stabilize the financial markets. Dealers are still closely monitoring the fiscal crisis in Greece. Greek finance minister Papaconstantinou said eurozone finance ministers have welcomed Greece's plans to sharply reduce its budget deficit. Moody's reported Greece's fiscal program addresses short-term challenges and is consistent with its current A2 rating but the outlook remains negative. Other data released in the eurozone today saw the EMU-16 January ZEW economic sentiment indicator fall to 46.4 from 48.0 in December while EMU-16 November construction output fell 1.1% m/m and 8% y/y. European Central Bank member Bini Smaghi reported Bank lending...is subject to some risk. While subdued bank lending has so far reflected the weak state of the real economy, credit supply restrictions may become more binding when loan demand by enterprises picks up as the economy recovers. In U.S. news, November long-term Treasury International Capital flows print at US$ 126.8 billion, up from a revised October print of US$ 19.3 billion. Also, November total net flows printed at US$ 26.6 billion, up from a downwardly revised -US$ 25.4 billion in October. Other data to be released in the U.S. today include the January NAHB housing market index. Traders are paying close attention to the U.S. earnings season with Citigroup having met analysts' expectations with a sizable loss related to its TARP repayment. Euro bids are cited around the US$ 1.3885 level.