Sterling, euro in forex trading

The euro and the pound are both gaining in currency trading against the U.S. dollar today. Risk currencies are seeing some positive action, now that euro zone economic data is surprising to the upside. The new focus in Europe and Britain is on positive data, with sovereign debt concerns moving out of focus.

U.S. dollar fundamentals don’t look as good, thanks to Ben Bernanke’s uncertainty about the economic picture in America. However, even with this concern about the future of the U.S. economy, there is optimism with regard to risk. Equities are gaining, and risk currencies rising as forex traders consider positive earnings news and an improved situation in Europe.

Of course, the situation is still volatile, and could change at any moment. But, for now, the U.S. dollar is down across the board and the high beta currencies have the upper hand in forex trading.

See AlsoEconomic Data and the Currency MarketForex trading with world currencies

China helps Aussie and kiwi in currency trading

Down under currencies are outperforming in forex trading today as optimism about China helps matters. Indeed, there is an assumption that China will eventually ease its money policies, and that growth will pick up again. Australia and New Zealand have strong trade ties to China, and benefit from this relationship.

For now, the Aussie and the kiwi are both higher in currency trading on the FX market, bucking the risk aversion that has set in, lowering the euro in forex trading.

However, it remains to be seen how long the down under currencies can maintain their strength in the face of increasing worries about the global economy and the risk of a double dip recession in the U.S.

See AlsoDown Under Currencies and Forex TradingCurrency trading on the FX market

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