The euro continued to strengthen against the US dollar during trading yesterday (October 21st), with the single currency breaching the $1.50 mark for the first time in 14 months.The greenback weakened amid a global rally witnessed in securities, commodities and high-yield currencies, with traders in all disciplines taking on greater risks, emboldened by improved prospects for global economic recovery.A slew of strong corporate earnings reports from the US helped to restore confidence in the financial sector, while commodities such as oil and gas also soared after weekly reports indicated a recovery in fuel demand across domestic, commercial and industrial markets in the US.Speaking to Bloomberg, Michael Woolfolk, a managing director at Bank of New York Mellon, said breaching the $1.50 mark may prove pivotal for the euro."This has enormous psychological significance. It opens the way for further gains above $1.50, which is overwhelmingly market consensus," he said.The pound also rose against the dollar yesterday after minutes from the October meeting of the Monetary Policy Committee helped to restore faith in the prospects for recovery in the UK.