The EUR rallied against the USD following a successful Spanish government bond auction. The common currency broke above the $1.25 level, gaining more than 2.25% to reach its highest level in five weeks against the greenback.

The EUR/JPY is currently trading around the 110.15 level, an increase of over 200 pips from last night. The U.K. pound is trading at $1.5183 from $1.4939. The GBP rose after the release of the manufacturing PMI which showed that Britain's manufacturing sector continued to grow at a fast pace in June. The Swedish Krona also rallied yesterday following the decision by Sweden's central bank to hike its key lending rate to 0.5%, up from 0.25%.

Today, the direction the euro takes will likely be based on the U.S. Non Farm Employment data, set to be released at 12:30 GMT. Investors are also advised to follow the release of the euro-zone unemployment rate at 9:00 GMT.