Excerpt from: Forex Commentary
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| February 04, 2010 | | U.S. dollar gains against sterling, euro in forex trading | The U.S. dollar is gaining against the sterling and the euro in forex trading today. High beta currencies are losing out as risk aversion rises and investors look for safety in the U.S. dollar.
Rate decisions in the euro zone and in Britain are no surprise: Both the ECB and the BOE decided to keep things the same. The situation has not improved enough for higher interest rates, and lower interest rates would send the message that panic is in order.
As a result of troubles in the euro zone, the euro has reached multi-month lows in forex trading. Greece is the dominating factor. For the sterling in forex trading, the problems are related to the massive amounts of public debt. After watching Greece go down, there are concerns that Britain could be approaching that point.
In any case, risk aversion is high, and the U.S. dollar is gaining in forex trading on the currency market. Dollar bulls are in control, and likely to remain so until the issues in Europe are worked out.
| Topic Tags: currency market, euro forex tading, euro zone, forex trading, Greece, risk aversion, sterling forex trading, U.S. dollar | |
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