Excerpt from: Forex Commentary
|
 |
| May 04, 2010 | | EUR/USD in currency trading | The euro is tanking in forex trading against the U.S. dollar today as fallout from the Greek bailout continues. There are widespread concerns that the euro zone is loading up too much on debt, and that its solvency could be in question.
As a result of all the concerns over the euro zone, and the attendant risk aversion, the euro has reached a new low for this year in forex trading. Not only are debt concerns causing problems, but retail sales in Germany were down -- which came as a surprise since German eco data has been pretty good recently.
All of this has forex traders running for safety. Even though U.S. debt is a bit of a concern, there is more confidence amongst traders that the U.S. can handle its level of debt. The same cannot be said of the euro zone or of Britain, and the U.S. dollar has the upper hand in currency trading.
| Topic Tags: currency trading, EUR/USD, euro zone, forex traders, forex trading, Greek bailout, U.S. dollar | |
|
|
