The euro saw a bullish day yesterday following pessimistic comments from the US Fed Chairman regarding the current state of the US economic recovery. Against the dollar, the euro surged over 100 pips and was able to breach the psychologically significant 1.3700 barrier. The EUR/GBP moved up some 50 pips before staging a slight downward correction during the overnight session. In addition, the EUR/JPY has gone up close to 100 pips in the last 24 hours, and is not showing signs of a possible reversal.

Today, euro traders will want to pay attention to the fundamental news out of the UK and US. At 12:00 GMT, the UK will release its Official Bank Rate. Analysts are debating whether the MPC will raise national interest rates above their current level of 0.50%. If so, riskier currencies like the British pound and euro are likely to see strong upward movement. That being said, new unemployment claims in the US are expected to drop when the latest figure is released at 13:30 GMT. This could give the US dollar a boost against the euro in the afternoon session.