Euro Sees Gains Following Fed Announcement

The euro advanced against its safe-haven currency rivals during evening trading yesterday, following the Fed's decision to initiate a new round of quantitative easing to boost the US economic recovery. The widely expected move resulted in the EUR/USD gaining more than 90 pips to reach 1.2961, a fresh four-month high. The pair experienced a slight downward correction before finding stability at the 1.2930 level. Against the Japanese yen, the euro advanced more than 70 pips following the news to peak at 100.33. Today, whether the euro will be able to maintain its bullish trend is largely dependent on a batch of US news set to be released throughout the day. Any disappointing data could result in the common-currency extending its recent gains against the greenback. That being said, if the US indicators come in above their forecasted levels, demand for the greenback could go up, which would result in the euro possibly giving up some of yesterday's gains.

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