Euro Sees Gains in Forex Trading

The euro is seeing some gains in forex trading right now. Stability has returned to the euro zone, for the time being. In currency trading, the euro is getting some help from a slight return to risk appetite on the news that U.S. jobless claims are lower, and that the employment situation in Germany is improving.

However, there are still problems surrounding the debt situation in the southern countries of the euro zone, with Spain and Portugal downgraded, and Greek debt now at junk status. There are some hopes that the moves will spur euro zone leaders to action, but we will have to see.

GFT's Boris Schlossberg offers a look at the forex trading forecast for the euro:

The EUR/USD rebounded above 1.3200 in the aftermath of the release and remained in a quiet consolidation mode throughout the morning European trade. The better than forecast economic data has been the one stabilizer to the massive risk aversion flows that have battered the currency. For the time being 1.3000 level in the pair remains out of reach and is unlikely to be challenged this week unless yet another exogenous shock triggers a wave of panic selling in the single currency. With the unit now grossly oversold and eco data supportive some light short covering could push it back above 1.3300 before the week’s end.