The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4580 level and was capped around the $1.4745 level. The common currency reached its highest level since 11 December before coming off. Many traders believe European Central Bank has not ended its long-standing monetary tightening cycle and may be forced to raise the refinancing rate another 25bps. In contrast, other traders believe the ECB will be lowering interest rates in 2008 after inflationary pressures receded. ECB member Weber hawkishly warned this weekend that higher EMU-13 inflation cannot be used as a benchmark for future wage negotiations. In U.S. news, traders await remarks from Federal Reserve Vice Chairman Kohn later in the week along with December non-farm payrolls data on Friday. The Federal Reserve is expected to ease monetary policy by 25bps at the end of January and another 25bps in March. Data released in the U.S. today saw November existing home sales up 0.4% m/m while sales were off 20% y/y to 5.0 million annualized units. The euro appreciated 11.07% vis-à-vis the U.S. dollar in 2007. Euro bids are cited around the US$ 1.4585 level.