The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3505 level and was supported around the $1.3420 level. The common currency extended Friday's gains and shook off a terrorist attack in Moscow that killed dozens of people. Data released in Germany today saw March provisional consumer price inflaton from several German states increase more significantly from February's readings. German March consumer price inflation was up 0.5% m/m and 0.6% y/y while the EU-harmonized component was up 0.6% m/m and 1.3% y/y. The German February import price index will be released tomorrow followed by March unemployment data on Wednesday. Data to be released in France tomorrow include Q4 gross domestic product numbers followed by February producer prices data on Wednesday. Additionally, the EMU-16 March business climate indicator improved to -0.32 from the revised prior reading of -0.65 with a gain eurozone industrial confidence and eurozone economic confidence, no change in consumer confidence, and a decline in eurozone services confidence. Data to be released on Wednesday include the the EMU-16 February unemployment rate and March EMU-16 consumer price inflation estimate. Dealers paid attention to Greece's €5 billion seven-year bond issue today with some noting investor response was lukewarm at best. Greek finance minister Panaconstantinou reported We needed to go to the market urgently to draw funds (to satisfy) our loan needs give that markets shut down for around a week for Easter. Greece is expected to borrow around €11.5 billion in May. European Central Bank member Nowotny reported the euro's current level is adequate. In U.S. news, data released today saw February personal income and spending up 0.0% and 0.3%, respectively. Also, the February PCE deflator fell back to +1.8% y/y and February core PCE readings came in at 0.0% m/m and 1.3% y/y. The U.S. Treasury announced it will sell its remaining shares in U.S. banking giant Citigroup this year. Euro bids are cited around the US$ 1.3335 level.
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