The EUR firmed, snapping four straight days of declines and rising in line with stocks as risk appetite increased amid the upbeat sentiment on growth. Over the past year, the EUR has become a proxy for risk appetite among developed-nation currencies.

In Europe, the euro zone manufacturing sector grew at its fastest pace in two years last month. However, the outlook on the EUR remains negative. Greece's fiscal woes remain in the forefront of investors' concerns, and the big question in the near term is whether euro zone monetary authorities will bail out the troubled country.

The EUR appreciated around 120 pips versus the JPY to close at 126.40 in yesterday's trading. The 16 nation currency experienced similar behavior against the USD as the pair rose from 1.3870 to 1.3925 by days end. Against the CHF, the pair closed at virtually an unchanged level of 1.4715. Overall, the EUR, which for the last few months have been sold by most traders, is seeing these sell-positions unwind and is now making a small recovery. The question now is can EUR bullishness continues versus the Dollar?