Excerpt from: Forex Analysis
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| February 19, 2009 | | Short covering sends euro higher against the U.S. dollar in currency trading | The euro is gaining in forex trading today, rallying as bargain hunters buy the 15-nation currency. Short-covering is also playing a roll in the rally of EUR/USD, reports Boris Schlossberg in GFT 360:
Dollar steadily lost ground during the Asian and early European
sessions today as bargain hunting and short covering helped drive both
the euro and pound higher. After coming close, but failing to take out
the psychologically important 1.2500 level yesterday, EUR/USD 
catapulted higher on a buy recommendation by US investment bank that
cited excessive bearishness in the EZ and the Eastern European
economies.
It appears that some optimism might be returning to the market after U.S. economic stimulus measures. There are thoughts that, long term, euro might see a breakout in forex trading.
Also helping: Rumors that Germany, Europe's largest econony, may be ready to provide economic stimulus and a bank rescue plan.
| Topic Tags: bank rescue, Boris Schlossberg, currency trading, dollar currency trading, EUR/USD, euro forex trading, euro rally, forex trading | |
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