U.K. pound rally slows as well

The euro is higher in forex trading against the U.S. dollar, but still has trouble getting through the 1.30 level. Indeed, recent attempts following good economic data in the euro zone have been rebuffed.

GFT’s Boris Schlossberg reports in FX360 on the situation for the euro in forex trading:

The euro however, continues to struggle with the 1.3000 barrier with all attempts to break out higher being capped at 1.3020 for the time being. There was some speculation in the market that M&A flow (a German company buying a US asset ) may have been responsible for the slowdown in price action and perhaps when that order clears, the pair could make another run at the 1.3050 level.

Euro forex trading forecast

The euro is gaining in currency trading on the FX market as some degree of risk appetite returns to the market. Even though there are some doubts about the global economy, the U.S. dollar is down across the board and forex traders are showing interest in the euro.

Indeed, the euro is getting some relatively solid help for the forex trading forecast, reports Boris Schlossberg in FX360:

The better than forecast PMIs and the largest monthly rise in IFO since German reunification all point to unexpectedly robust performance in Q2.

Currency trading with the euro

There is a risk rally going on right now on the currency market, sending the euro higher in forex trading. Most of the euro’s gains today are coming as economic data shows improvement. Sterling is also seeing solid progress in currency trading. Germany, the largest economy in the euro zone, came back with a better than expected Ifo reading, and that is helping.

Also, other signs of economic improvement are helping to boost the euro in forex trading, helping traders forget about sovereign debt problems. GFT’s Boris Schlossberg reports in FX360 on forex traders’ shift in focus:

Over the past several days, the upside economic surprises from the Eurozone have to a large extent allayed investor fears regarding

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.

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How soon can euro hold on to $1.30?

The euro is looking to find support at the 1.30 level, but first it has to hold on to that level. Earlier today, the euro did break through the psychologically important mark, but it has since fallen back below 1.30 as economic worries set in.

Indeed, risk appetite is being affected by the weaker housing data in the U.S., as well as disappointing earnings from IBM and Goldman Sachs. With European stocks lower, and U.S. stock futures pointing to a lower open, it is little surprise that risk appetite from earlier is cooling off.

However, the euro forex trading forecast is not terribly bleak. The most recent Spanish auction was a success, and the Irish auction was also successful. German PPI data was surprisingly good, and that is helping as well. There are thoughts that perhaps the euro will be able to hold on to the 1.30 level sometime soon after all.

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Forex Trading involves high risks, with the potential for substantial losses and is not suitable for all persons. Past performance is not necessarily indicative of future results.USD: Expect More Housing Weakness

It has been a quiet start to a busy trading week with equities consolidating after Friday’s sharp losses and the dollar trading mixed against other major currencies.

Euro heads higher in forex trading

Many forex traders got a bit of a surprise today when the euro moved higher in forex trading against the U.S. dollar. This is because many expected the euro to weaken on the currency market, due to some continuing issues in Europe.

First of all, Hungary failed to come to a funding agreement with the IMF. Then Moody’s downgraded Ireland’s sovereign debt rating. All of this seemed to indicate that the euro would head lower in forex trading.

However, this wasn’t the case. Instead, the euro has taken off in forex trading, once again looking to breach the 1.30 level against the U.S. dollar. There is an explanation for this seemingly odd behavior, though. GFT’s Boris Schlossberg looks at the issues helping the euro in forex trading:

For now

The Euro continues its remarkable rebound against the dollar following a long-term low of $1.1876 in early June. Since that point, the Euro has bounced nearly 11 pips in about six weeks to a current rate of $1.2935.
One Euro actually traded as high as $1.3009 in late European trade before opening in New York with a pullback. Since that early June low, which coincided with the pinnacle of fear regarding the European credit crisis, conditions in the US have become less uncertain thanks to ongoing unemployment and housing …Forex Rate – Forex and Exchange rates

Euro in forex trading

The euro is looking to break through the 1.30 level in forex trading against the U.S. dollar. The euro is regaining much of its strength as optimism about the economy, coupled with concern about U.S. fundamentals, provides some interest in the euro.

Indeed, even the news that the trade deficit in Europe has widened is not damping the euro. Instead, forex traders have chosen to look at the news as proof that demand in Europe is rising, and that the economy is likely to improve.

This comes on the heels of the Fed downgrading the U.S. economic outlook. With the fundamentals of the U.S. economy still improving very slowly, and with weakness, it is little surprise that the euro is finding some strength in forex trading.

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Top leaders see hope for the euro zone

With the euro gaining in forex trading on the currency market today, it is little surprise that there is some optimism in Europe right now. Indeed, a top ECB member insists that there are encouraging signs of recovery.

One of those signs is that there appears to be healthy demand for Southern European debt. Spain’s bond auction went well, and Greece recently sold some short-term debt. These moves suggest that financing will be available for ailing European countries, and that the sovereign debt crisis may be ending.

With focus on improvements in the euro zone, there are also those turning to examine the fundamentals of the U.S. dollar. With hysteria over European sovereign debt almost at an end, it is little surprise that forex traders are now looking for gains from the euro, while weakening the U.S. dollar.

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