The greenback received a boost ahead of this weekend's G8 Finance Minister's meeting, with Japan's FinMin Yosano jawboning the currency higher. In light of recent speculation among Chinese and Russian government officials touting the need for a new global currency given the deteriorating US fiscal outlook, Japan's Yosano expressed confidence in US Treasuries - calling his nation's trust in US debt absolutely unshakeable.

The University of Michigan consumer confidence survey, released earlier today climbed to its highest level in 9-months but was largely mixed against consensus estimates. The June preliminary conditions index sharply beat expectations, printing at 74.5, versus calls for an improvement to 68.5 from 67.7. The expectations component disappointed, slipping to 65.4 and missing estimates for a gain to 72.0 from 69.4 in May while sentiment survey edged up by less than forecast to 69.0 from 68.7 previously.

Euro Recovers above 1.40

The euro trades above the 1.40-level after swinging lower from 1.4134 to 1.3937. Economic data from the Eurozone pointed toward continued weakness in fundamentals, with April industrial production deteriorating more than expected. The April industrial production fell by 1.9%, versus calls for a smaller decline at 0.4% from March at -2.0%, while on an annualized basis, industrial production plunged by 21.6% from a 20.2% decline in the previous year.

EURUSD finds support at 1.3970, followed by 1.3940 and 1.39. Subsequent floors are seen at 1.3850, backed by 1.38 and 1.3765. On the topside, resistance is seen at 1.4040, followed by 1.4070 and 1.41. Subsequent ceilings are eyed at 1.4130, followed by 1.4165 and 1.42.