The single currency nudged higher against the USD yesterday and is holding around 1.47 so far this morning

The single currency reversed its recent downward trend against the US dollar, posting slight gains as the market felt the greenback's rally may have been over-stretched.

• The euro initially made up solid ground as investors reassessed a rally that had sent the greenback to its highest level in more than a month.
  
• The US dollar had advanced broadly on Tuesday after ratings agency Fitch downgraded Greece to below the single A bracket for the first time in a decade.
  
• The euro reversed these losses though, on the view that the weak status of Greece's public finances was already well known and that the currency's move had been overdone.
  
• In the afternoon, the dollar pared some its losses after the rating agency Standard & Poor's lowered its outlook on Spain's credit rating, adding to concerns that sovereign credit problems have not abated.