Excerpt from: Forex Training
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| July 08, 2010 | | GFT's Kathly Lien breaks down euro rebound | Risk is returning to the forex market, and one of the beneficiaries is the euro. However, the euro success in forex trading isn't just due to the return of risk appetite. There are some reasons that the euro is returning to favor.
GFT's Kathy Lien offers three reasons that the euro is gaining support in forex trading. She shares them in FX360:
- Concern fading with regard to sovereign debt: The situation with Portugal, Ireland, Italy, Greece and Spain is easing, and the ECB's lending facility went well.
- U.S. in focus: Instead of focusing on the euro zone and its troubles, forex traders are now looking at the U.S. and seeing some of its weak fundamentals. The result is a stronger euro in forex trading.
- Short squeeze: Rebounding EUR/USD has resulted in a short squeeze.
| Topic Tags: euro forex trading, forex trading, Kathy Lien, risk, U.S. dollar | |
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