Excerpt from: Forex Forecast
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| July 13, 2010 | | Euro forex trading forecast | Last night, Moody's downgraded Portugal's sovereign debt rating. This didn't come as much of a surprise, since Fitch and S&P had already done so. However, the move did send the euro dipping below $1.25 in forex trading.
Now, though, all of that is forgot as the euro moves higher in currency trading. Indeed, the short term forex trading forecast for the euro looks reasonably positive. This is because other news is overshadowing the Portuguese downgrade.
The U.S. trade deficit is widening, indicating that consumers are getting ready to spend more. On top of that early earnings reports are positive, providing a catalyst for risk appetite. Optimism is high on Wall Street for now, and that means investors are looking for higher yields than they can get with the U.S. dollar.
Euro is benefiting in forex trading, moving higher as commodities gain and as the situation in the economy improves.
| Topic Tags: currency trading, euro forex trading, forex trading, forex trading forecast, Portugal, trade deficit, U.S. dollar | |
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