Euro Vulnerable in Forex Trading

Euro remains vulnerable in Forex trading, thanks to the still-unresolved eurozone debt crisis. The 17-nation currency is flat right now, slightly lower, ahead of the holiday. Trades are winding down, and the euro is still likely to run into trouble against safe haven currencies like the US dollar and the Japanese yen.

Indeed,  euro is lower against both of those currencies today. Some are disappointed in the euro’s performance, though. Better news out of the United States is providing some hope for the global economy in general. However, with issues still not worked out in the eurozone, it’s hard for many to get excited about the euro.

European economies still remain sluggish, and there is still the potential for downgrades for member nations. Austria has escaped a downgrade for now, but there are still plenty of other eurozone nations that could be downgraded. On top of that, many Forex traders are waiting to see how the cheap three-year ECB loans work toward easing the crisis. Some think that the ECB will need to buy up more Italian and Spanish bonds to stave off the crisis.

At 15:16 local time EUR/USD is slightly lower at 1.3035, down from the open at 1.3053. EUR/JPY is lower, too, down to 101.8655, off the open at 102.1025. EUR/GBP is higher though, ticking up slightly to 0.8327 from the open at 0.8325.

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