Excerpt from: Forex Commentary
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| May 27, 2010 | | U.S. dollar drops in currency trading | The euro is gaining in forex trading today, thanks to news out of China. Yesterday, financial markets were thrown into turmoil as rumors surfaced that the Chinese were planning to sell European debt in order to limit their exposure. The euro took a tumble as a result.
However, today things are calming down as the Chinese deny those rumors. The relief is so great, that the U.S. stock market is on the rise, in spite of disappointing GDP data. And, as risk appetite returns, the euro gains in forex trading.
The U.S. dollar is heading lower as forex traders look for higher returns, and the euro finally rallies. However, the euro rally might be capped, since there are still concerns about the European debt situation. However, as long as the euro zone shows that it can handle itself, things should work out.
| Topic Tags: China, currrency trading, euro forex trading, European debt, forex traders, forex trading, U.S. dollar, U.S. stock market | |
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