Euro up over 2 cents vs. US Dollar

The euro rose considerably against the euro yesterday, strengthening 2.1 cents (1.51%) to close the day at $1.4076.

• In early trading yesterday the single currency rose sharply against the greenback, after European equity markets stabilised following steep falls on US equities overnight. On Monday, the DOW suffered its worst one-day loss in two months.
  
• The dollar also fell as the market awaited the outcome of a US Fed policy meeting later today, and a record $104 billion in US debt issuance this week. Traders will be watching closely to see what the Fed says about the economic outlook and its debt-buying programme, with markets skittish over the possibility of dovish comments.
  
• The single currency’s gains were also slightly capped by US housing data released mid-afternoon, which showed a slower-than-forecast rise in sales of previously owned homes.
  
• In trading so far today the euro has continued its rise against the greenback, as investors brace themselves for some important announcements out in the US.
  
• First, Core Durable Goods Orders (MoM) are released at 13.30 BST, followed by New Home Sales at 15.00 BST. Finally, the US Fed is to deliver its latest interest rate announcement and statement at 19.15 BST.