Euro rallied against the US dollar as the Fed confirmed their stance on a loose monetary policy

The single currency rallied from recent lows against the dollar gaining 0.9% as the stock markets firmed and investors got reassurance of low rates from the US Fed.

• European equity markets reversed their recent downward trend yesterday lending support to the euro as the market sold dollars in favour of riskier assets.
  
• Weaker-than-expected predicted unemployment figures went relatively unnoticed in the markets, but the dollar did extend losses following data from the US ISM services sector, which expanded for the second consecutive month, eroding the greenback's safe haven appeal.
  
• In the evening session, the euro jumped to a fresh intra-day high of 1.4905 as the Federal Reserve confirmed market expectations in making no change to their current stance on interest rate policy, calming any fears.
  
• In trading today, the European Central Bank hold their policy meeting, where analysts are keeping a close eye on any mention of exit strategies.