The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3620 level and was supported around the $1.3440 level. Traders continue to express optimism that meetings between Greek officials and German officials this week will be productive and result in some sort of financial asssitance package for Greece. Ahead of this week's meeting, Greece announced today that it is pursuing another €6.5 billion in deficit cuts. Greece is expected to float up to €5 billion in new 10-year bonds over the next week or two to help finance its massive budget deficit that topped out above 12% of gross domestic product in 2009. One possible financial rescue scenario has some eurozone member countries purchasing Greek bonds to support the beleaguered country. In addition to Greece, other eurozone countries continue to face difficult fiscal challenges including Spain, Portugal, and Ireland. Data released in the eurozone today saw EMU-16 February producer prices climb 0.7% m/m and fall 1.0% y/y while February consumer prices were off 0.9% y/y. Interest rates were back in focus today as Bank of Canada kept its main overnight rate unchanged at 0.25% and Reserve Bank of Australia lifted its main rate by 0.25%. The European Central Bank is expected to keep its main refinancing rate unchanged at 1.00% for the foreseeable future. The ECB will discuss on Thursday the idea of lending covered bonds to banks for a fee. In U.S. news, Kansas City Fed President Hoenig made news today when he vociferously defended the need to maintain the Fed's policymaking and supervisory independence. Hoenig also said the Fed should begin to raise interest rates even with high unemployment. Minneapolis Fed President Kocherlakota said there is a risk that smaller U.S. banks could precipitate the next financial crisis, adding their exposure to commercial real estate may be exerting a significant drag on the overall economic recovery. Euro bids are cited around the US$ 1.3335 level.