U.K. Pound Rallies in Forex Trading

Sterling gets another boost in currency trading

The U.K. pound is gaining in forex trading on the currency market today. Better than expected economic data is helping the sterling in currency trading.

Indeed, right now the sterling is one of the few currencies gaining against the U.S. dollar. A little bit of risk aversion is pressuring most of the high beta currencies. Euro is struggling as the fallout continues from S&P's response to the latest suggestion on the Greek bailout.

Equities are struggling, though, and that could weigh on the U.K. pound later. For now, though, sterling is higher, bucking the trend for a higher dollar across the board.

Euro Looks for Weekly Gain in Forex Trading

Currency trading with EUR/USD

The euro is heading for a weekly gain in forex trading on the currency market. Unless something dramatic happens tomorrow, the euro will likely end on a much higher note, following a week-long rally.

Euro is getting plenty of support right now as the Greek austerity measures become finalized. Additionally, there is some hope that some sort of process for funding can be arranged for other euro zone countries dealing with possible financial failure.

Also helping the euro in forex trading is the fact that many expect the ECB to raise interest rates next week. Contrasted with the U.S. dollar, whose rate is likely to remain near 0% for a while, the euro looks like a good bet.

IMF Asks U.S. to Raise Its Debt Ceiling

Greenback lower today in currency trading

One of the issues that could weigh heavily on the U.S. dollar in currency trading on the FX market is the fact that the debt ceiling has been reached. For now, dollar weakness is due mostly to relief over the Greek austerity vote, and risk appetite.

Later, though, dollar weakness could come as a result of economic problems, and sovereign debt issues. If the U.S. debt ceiling isn't extended again, defaults could begin, and that would be a real problem for the U.S. dollar -- and China isn't likely to ride to our rescue as it is for the euro zone.

In order to prevent another global financial crisis, the IMF has asked the U.S. to raise its debt ceiling. It will be interesting to see what is decided, and whether members of Congress can come to a budget agreement.

Euro Rallies Even with George Soros Warning

Euro higher in forex trading

The euro is seeing some strength in forex trading on the currency market after dealing with a degree of weakness. Fears about what's next for the euro zone have been weighing on the 17-nation currency.

Worries expressed by billionaire investor George Soros regarding a possible economic collapse in Europe because of Greece have not been enough to bring the euro down. Indeed, some might be hoping that this will spur European leaders to action that will save the region.

Euro is still vulnerable, though, even with the current rally. There is a good chance that it will fall again, and many forex traders are waiting for the outcome of the vote in Greece's parliament.

Canadian Dollar Struggles Against Volatility

Loonie in currency trading

The Canadian dollar is struggling in forex trading on the currency market today. Choppy trading marks CAD/USD as economic news out of the U.S. sends waves of uncertainty through the financial markets.

While the loonie has been struggling to hold on in currency trading, it looks as though it might succumb. The dollar is rising as forex traders look for a safe haven amidst the concerns about the future of the U.S. economy after rising jobless claims and Bernanke's disappointing economic forecast.

Additionally, the Canadian dollar is likely to suffer as oil price drop. The Canadian dollar is connected to oil prices, and with oil prices heading back toward $90 a barrel, it appears that the loonie will have trouble.