Euro Finds Support in Forex Trading

Euro is finding some support in Forex trading today, heading a little bit higher. Even though there are still concerns about what is happening in Europe, traders are looking for a little bit of respite from the risk aversion and gloom. So, the euro is a little bit higher right now, and other high beta currencies are seeing some success as well.

Euro is slightly higher against the US dollar right now. Spain has all but nationalized its fourth-largest bank, and is taking aggressive steps to shore up its financial sector. While this may not solve Spain’s problems, it’s at least an attempt, and one that many are viewing favorably. Additionally, UK pound, another high beta currency, is seeing success against the US dollar. The Bank of England is keeping quantitative easing on hold, and that means that the pound won’t be intentionally weakened right now.

Euro is still higher against the pound today, and is seeing modest gains against its major counterparts. However, gains are limited, and the euro is rangebound, due largely because of the uncertainty that remains. A Greek government has yet to be formed, and questions remain about how the eurozone will tackle stimulus. There is plenty of room for the euro to fall to the US dollar in the future.

At 14:01 GMT EUR/USD is up to 1.2971 from the open at 1.2930. EUR/GBP is up to 0.8018 from the open at 0.8017. EUR/JPY is up to 103.6595 from the open at 102.9720.

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