Selling pressure was mounted on the dolla yesterday, with gold reaching $1000

The euro rallied strongly against a broadly weakened dollar yesterday, briefly reaching a yearly high of 1.4523 at 15:30BST before closing at 1.4474.

• The single currency gained almost exactly 1.00% yesterday, as rising risk sentiment, supported by strong equity markets, continued to put selling pressure on the greenback.
  
• The dollar suffered from a rise in gold prices, which reached its highest level since March 2008, as well as fresh concerns over its status as a reserve currency, with analysts suggesting that dollar selling pressure could continue over the short term as risk sentiment strengthens.
  
• The single currency was given further strength in the afternoon as the US markets opened up positive, encouraging investors to sell the safer currency.
  
• In trading this morning, the euro has continued to trade near its 2009 high, as investors continue to sell the low-yielding dollar in favour of riskier assets.
  
• Investors will be listening to the words of the Chicago Fed President, who speaks today at 13:00BST, for clues to the pace of US economic recovery, whilst in the eurozone, there are no major announcements.