Euro Higher for Now, But Debt Remains a Problem

Euro is higher straight away, gaining as some Forex traders engage in brief covering. However, the 17-nation currency continues to be at risk of debt issues — in the eurozone and in the US.


For now, euro is obtaining to a small degree of a lift when some choppy trading yesterday, and a flight to safety for markets. Middle East demand has helped support the euro up till now in today’s Forex trading, but that might easily fade. Indeed, several expect that because the US session approaches, the euro can realize it more durable and more durable to hold on to gains.


The biggest issue, jointly may expect, is sovereign debt. Eurozone debt remains out of control, and there is no sensible attempt to solve the debt crisis. On prime of that, budget issues in the US have several worried about what’s next for the world’s largest economy. All of this uncertainty means that the short covering that's helping the euro is unlikely to last as Forex traders explore for shelter soon. With politicians in Europe and the US refusing to induce serious about debt issues, it'll be awhile before Forex traders feel extremely safe.


At 14:07 local time, EUR/USD is up slightly from the open at 1.3490, moving to 1.3503. EUR/GBP is higher, up to 0.8653, up from the open at 0.8624. EUR/JPY is also higher, moving up to 104.0900, from the open at 103.7095.