The euro initially retreated against the US dollar today after German chancellor Angela Merkel and French president Nicolas Sarkozy yesterday rejected calls for a common euro bond to stem the region’s debt crisis. Mr Sarkozy said that euro bonds could hurt the healthiest eurozone countries, while Ms Merkel said she doesn’t believe that euro bonds will resolve the region’s debt crisis. The reaction in the market suggests that investors were expecting a more concrete plan on how to mend the region’s underlying deficit. Also weighing on sentiment during the early trading session was the lack of details regarding the revival of the financial-transaction tax. By around 8.15am (London time), the euro had hit a low of $1.4326, although buyers quickly came in at these levels sending the euro up to a high of $1.4517 by 3.30pm (London time). Stronger-than-expected earnings from the likes of Staples and Target, and talks of a fresh round of stimulus in the US helped revive risk appetite and lifted the euro this afternoon. Anthony Grech, London