Excerpt from: Forex Analysis
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| February 25, 2010 | | Currency trading with the euro | The euro is falling in forex trading as Europe frets about the situation in Greece. Moody's warned that Greece faces another downgrade to its sovereign debt rating if austerity measures aren't adopted. On the other side, the Greek government is getting a great deal of pressure from its own people to reject austerity measures.
The euro zone is concerned about member states' exposure to Greek debt, and there are concerns that this could put a serious damper on the chances for economic recovery in the region this year. This is sending the euro lower in forex trading.
It is not surprising that high beta currencies are dropping right now in favor of the U.S. dollar, which is rising on its safe haven status. The carry trade is unwinding as well, and it appears that investors are ready to run for cover.
| Topic Tags: carry trade, currency trading, euro forex trading, forex trading, Greece, high beta currencies, safe haven, U.S. dollar | |
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