Euro Pulls Back Slightly, Regains Lost Ground

Profit taking after Greek austerity vote

The euro lost ground in forex trading, for a little while, as profit taking ensued after the Greek austerity vote. Now, though, with support from higher gold prices and general risk appetite, the euro is gaining in forex trading.

Indeed, the euro is higher as optimistic forex traders look for better gains. The U.S. dollar is down across the board, falling even to the Japanese yen. Risk appetite is higher, while at the same time concern about the U.S. is setting in.

With the current crisis overcome in the euro zone, focus is now shifting to the U.S. Concerns about a growing deficit are part of the picture. However, the most immediate concern for the global economy is the fact that if the U.S. doesn't raise its debt ceiling, defaults on the trillions in debt might begin.

With that kind of concern about the greenback, it is no wonder the euro has the upper hand right now in currency trading.