Europe's single currency reached a 15-month low against the dollar following a French bond auction this morning which saw almost all of the €8bn of debt targeted being sold.
European leaders have abandoned plans for bondholders to bear the brunt of sovereign debt collapses, following talks overnight to tackle the eurozone crisis.
The S&P 500 has risen 1.7%, with European equity markets also holding onto gains after German Chancellor Angela Merkel and French President Nicolas Sarkozy reached accord on the debt crisis.
Angela Merkel and Nicholas Sarkozy are set to meet today as political commentators warn Europe is entering the end game for the crisis, which must be resolved this week to save the euro.
German Chancellor Angela Merkel helped lift markets further today after revealing moves towards "fiscal union" in Europe were afoot.
The yield on 1-year German bunds turned negative today for the first time ever, according to Bloomberg data, as the European Central Bank looks set to ramp up measures to fight the debt crisis.