Forex Go!

The euro is getting a little help today in forex trading on the currency market as a relief rally is under way. Even though overall euro zone unemployment remains rather high, euro is getting a boost from the fact that Germany saw some improvement.

As the largest of the euro zone economies, Germany has a great deal of influence on the direction of the euro. However, disparities between countries like Germany, and countries like Spain, could cause problems in the long run for the euro zone economy.

So for, though, the euro is staging a rally in forex trading, even though other currencies like the pound and the Aussie are falling to the U.S. dollar.

After seeing a bit of a pullback on S&P’s downgrading of Ireland’s sovereign debt, the euro is seeing some gains in forex trading. The euro is up against the U.S. dollar in currency trading.

One of the main helps to the euro has come from the better than expected German Ifo data. Concerns about Ireland’s debt have been relegated to the back burner as forex traders contemplate the strength of the largest euro zone economy.

There are still concerns about the euro zone economy, though. However, with Germany looking ready to lead the rest of the EU in economic growth, some are hoping that the stronger euro zone economy means that the euro will remain stronger against the U.S. dollar.

The Canadian dollar is finding its footing in currency trading on the FX market, moving higher today as BHP Billiton makes a hostile bid for Potash Corp.

The loonie is a commodity currency, and that means it does well in forex trading when raw materials prices rise. The current bid for Canada’s Potash Corp., from the largest mining company in the world, is only helping matters right now.

As a result, the Canadian dollar is up in currency trading against the U.S. dollar, moving in the direction of parity again. Loonie is also expected to strengthen in forex trading if the global economic recovery manages to gather a little more steam.

The euro is pulling back in forex trading on the currency market today as concerns about the economy become uppermost. Euro has been falling against the U.S. dollar due to profit taking after its good run earlier this week, but some of the concern is also waning risk appetite.

Concerns about economic recovery are asserting themselves as retail sales miss the mark, and as concerns about second quarter GDP mount.

EUR/USD is still above the 1.30 level on the currency market, but it remains to be seen how long the currency pair can retain its position.

The U.K. pound is rallying today in forex trading on the currency market. An improving picture in the British economy is helping give the sterling a boost in currency trading.

Britain saw a lower claimant count than expected, indicating that the jobs situation could be improving. Indeed, employment for the three months leading up through May saw a good pace.

GFT’s Boris Schlossberg reports in FX360 on the possibilities for the sterling in currency trading:

While we believe any expectations of monetary tightening by the BOE are much too premature, today’s positive labor market results should prove constructive to sterling longs and the pair will likely target 1.5300 later in the day if risk appetite remains supportive into the North American session.

The euro is not seeing the same success today, though, as it struggles against the return of some risk aversion to the currency market.

The U.S. dollar is weaker in currency trading on the FX market today, thanks to a return in risk appetite.

Forex traders are looking for higher yields, and equity rallies around the world are prompting a little more confidence. As this happens, they turn to higher yielding currencies like the euro, sterling and Aussie, weakening the U.S. dollar.

However, this rally in risk might end up being a bit brief. There are still plenty of economic concerns right now, in Europe and in the U.S., and that is causing some to believe that maybe it’s not time to abandon safe haven currencies just yet.

The euro is seeing gains in forex trading today, as risk appetite makes a small appearance. Yesterday, risk aversion was the story, but it appears that forex traders are ready for a little bit of risk today.

The euro got a little help from higher stocks in Europe. However, stocks have been volatile since the news that U.S. employment numbers are again disappointing. The U.S. stock market has moved higher, but investors are cautious, and this is limiting gains for the euro. Additionally, many are waiting to see how things go with the ECB tender offer.

While the euro is presently higher against the U.S. dollar, it is not known how long this state of affairs can last. If risk aversion once again returns, the euro is unlikely to be able to hold on to any of its gains. The euro is also a little higher against the U.K. pound.