The euro strengthened vis-à-vis the U.S. dollar today as the single currency tested offers around the US$1.4735 level and was supported around the $1.4640 level. Technically, today’s intraday high was right around the 23.6% retracement of the move from $1.4015 to $1.4965. Traders expect the Federal Open Market Committee to reduce the federal funds target rate by 25bps or 50bps tomorrow with the former the most likely scenario following Friday’s non-farm payrolls tally. Many traders also believe the FOMC will lower the target rate at the end of January. Data released in the U.S. today saw November pending home sales up 0.6%. In eurozone news, European Central Bank member Bini Smaghi say the current rise in interbank rates is unjustified. ECB’s Stark said the ECB’s Governing Council believe interest rate risks are pointed upwards, a different conclusion than the forecasts published by the ECB on Thursday that saw inflation between 2.0% and 3.0% in 2007 and 1.2% to 2.4% in 2009. Data released in Germany today saw the October trade surplus print at €18.7 billion, up from €18.1 billion in September. Euro bids are cited around the US$ 1.4565 level.