Low-Risk Bonds Sell Off, Sending Euro Higher

Euro is surging in Forex trading today as low-risk bonds sell off today. The sell-off in low-risk bonds is weighing on European stocks and helping the 19-nation currency gain ground against its major counterparts.

As the US dollar consolidates, the euro is getting a little extra help from a sell-off in low-risk bonds. Bonds that carry low risk, like US Treasuries and German Bunds, are selling off, weighing on global stocks and providing anxiety on top of the worries over Greece.

The euro was already gaining traction from the fact that US dollar positions are being consolidated, but this bond sell-off is further helping the 19-nation currency, allowing it to surge.

However, there are still plenty of questions about the fate of the euro. In Germany, a suggestion that Greece’s continuance in the eurozone be put to a vote has been floated. A sharper dividing line is appearing between those who want to keep Greece in the eurozone and those who want to be done with Greece and its drama.

At 10:39 GMT EUR/USD is surging, heading up to 1.1259 from the open at 1.1156. EUR/GBP is also performing well, moving up to 0.7181 from the open at 0.7157. EUR/JPY is gaining ground, too, heading up to 135.0100 from the open at 133.9670.

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