Euro Tries to Maintain 1.50 Level

The euro is attempting to maintain its level at 1.50 this morning. With the risk trade taking a hit, the euro is finding it more difficult to maintain in forex trading. However, the U.S. dollar has pared some of its earlier gains. But it remains to be seen whether or not the euro can hold on after the stock market opens -- and possibly does so at a lower rate. If the market can hold on, though, there is a good chance that the euro will find more support.

GFT's Boris Schlossberg reports in FX360 on the issues facing the risk trade:

Risk currencies ran into a wall of disappointing data along with unexpected comments from Fitch ratings regarding UK debt causing the dollar to strengthen slightly in early morning European session. Fitch noted that UK was the most vulnerable of the G-4 economies to a ratings downgrade given its perilous fiscal position and those comments sent sterling tumbling nearly 200 points in late Asian trade before the unit finally stabilized. EUR/USD also had trouble gaining any traction stalling at 1.5000 level after a mixed ZEW report.