The euro rose against the US dollar today, paring earlier losses, after a survey showed business confidence in Germany unexpectedly surged to a three-month high in July.

The single currency had fallen earlier on concern that stress tests being released later today will show the region's banks must raise funds to bolster their balance sheets.

Recent data suggests Germany's recovery has gathered pace in the second quarter as factories stepped up production to meet global demand. German exports surged 9.2% in May and unemployment fell in June. Should positive results continue in similar fashion, risk could to the market in droves and safe-havens may plummet.