Excerpt from: Forex Analysis
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| December 01, 2009 | | Euro hits 1.51 in currency trading | The euro is heading higher in forex trading on the currency market today as risk returns. Concerns over Dubai appear to be fading -- and fading rather quickly. Forex traders are now looking for returns, and the U.S. dollar just isn't cutting it. As gold approaches $1,200 an ounce, the euro is gaining the upper hand in forex trading.
Supportive economic data out of the euro zone is helping matters for the 16-nation currency, and the euro is heading higher. Equity markets are also rallying, providing support for the risk trade.
Indeed, high beta currencies are the story today, with the sterling rallying as well, after a spell of weakness. For now, forex traders are overlooking the somewhat distressing fundamentals associated with the U.K. pound and sending the sterling higher in an effort to reap the benefits of risk.
| Topic Tags: currency trading, euro forex trading, forex trading, high beta currencies, risk appetite, risk trade, U.S. dollar | |
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