The euro dollar exchange rate is 1.013% higher on the day with EURUSD at 1.4366. The euro pound exchange rate is 0.863% higher with 1 EUR = 0.8844 GBP. "Risk appetite returned to boost the single currency last night, with the Fed well and truly behind the curve in terms of monetary policy," says a note from money transfer uk company Caxton Fx. The Fed’s statement triggered a knee-jerk climb for this pair of two cents. The news signalled that the US dollar will be a funding currency for the carry trade into higher interest bearing currencies for a long time to come. The eurozone debt story could well come back into focus in coming sessions, with the equity markets stabilising and with the Fed statement behind us. The euro is on the front foot right now, but it only takes another negative headline to increase dollar safe haven flows. The fact that the ECB is buying Spanish and Italian bonds is keeping panic at bay for now.

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