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The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.2755 level and was supported around the $1.2675 level. Trading conditions were thin ahead of the U.S.?s April non-farm payrolls report that saw jobs growth of +138,000 last month, much less-than-expected. The unemployment rate printed at an unchanged 4.7% and average hourly earnings printed at +3.8%. The March non-farm payroll tally was downwardly revised from 211,000 to 200,000. Many traders expressed surprise with today?s non-farm payroll report because recent U.S. economic data have been relatively strong and some economists are already talking about a revision to this month?s number. The focus next week will be the Federal Open Market Committee meeting in which policymakers are expected to lift the federal funds target rate by +25bps to 5.00%. The big news yesterday involved comments made by European Central Bank President Trichet who indicated rate hikes in June and beyond are probable if the eurozone continues its economic recovery. Trichet also pledged continued "vigilance" on the inflation front and reiterated current EMU-12 monetary policy remains "accommodative," pledging "withdrawal of monetary accommodation." Notably, European interest rate futures are now pricing in about a 40% chance the ECB will tighten policy by 50bps rather than the customary +25bps rate hike. Regarding currencies, Trichet characterized the euro?s recent appreciation as "smooth and orderly" and this potentially opens the door for additional gains by the common currency. ECB?s Issing spoke and said the ECB should not necessarily be implementing a "more aggressive stabilization policy." Issing also said the ECB should not raise its inflation goal and called the eurozone?s low growth rate "more relevant than ever." Bundesbank?s Weber said the ECB?s economic forecasts will be derived from the market?s expectations for interest rates. Additionally, "Eurogroup" president Juncker said Ecofin finance ministers "have seen that there are a number of economic aggregates" that support the case for additional monetary tightening. Euro offers are cited around the US$ 1.2775 level