The euro dollar exchange rate is 1.104% lower on the day with 1 EUR = 1.3521 USD.
The euro pound exchange rate is 0.279% lower with 1 EUR = 0.8751 GBP.
The euro is sharply lower today as global equity markets fall sharply in line with a return of negative sentiment.
The catalyst appears to have been the US Federal Reserve that yesterday announced a new set of monetary easing measures that did not quite live up to expectations.
"There was a major euro-dollar flow in response to the Fed’s statement, which saw this pair tumble by two and a half cents overnight. The euro is now trading at an eight month low against the dollar, which is a reflection of the incredibly low market confidence on show at present," says a note from UK money transfer company Caxton Fx.
"With the focus heavily on the FOMC meeting yesterday, the dollar was always going to be carefully monitored by traders. After the Fed declaring their bearish stance, it encouraged traders to pile into the dollar," says Simon Denham at Capital Spreads.
It hit a two week high against the yen and managed to also reverse all its losses earlier gained by the euro.
It appears the bears are most definitely out for now and we could expect to see traders taking to the safe havens of the currency markets, which certainly include the dollar. The euro is currently trading down against the dollar to 1.3550 which is at a week low.
With focus likely to shift back to events in the eurozone and Greece in particular, sentiment looks unlikely to provide the euro with much strength to rebound.
