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Tuesday, July 20, 2010

Euro Up on Stress Test Speculations

The euro is growing against the other major currencies today, as the European banks’ stress test speculations provide a better ground for the Forex traders than the sovereign debt risk concerns in some of the Eurozone countries.

The currency rose against the U.S. dollar, the pound and the yen after opening with a bearish weekly gap and losing slightly during the early trading session. European officials are stress-testing 91 banks, trying to determine their level of strength against the crisis. The results of the test are to be released on July 23. The euro optimists are expecting the stress test results to show good results with the majority of banks doing well.

Meanwhile the euro is still traded under a potential threat of the sovereign debt crisis from such countries as Ireland, Greece or Portugal. Moody’s have downgraded Ireland’s government bond rating from Aa1 to Aa2 today. Hungarian forint has also performed badly today after the IMF refused to issue a loan for now. Although Hungary isn’t in Eurozone yet, it’s a potential member and its fiscal troubles influence the course euro.

EUR/USD rose from 1.2903 to 1.2954 as of 16:16 GMT today, it traded at as low as 1.2870 earlier today. EUR/JPY went up from 111.70 to 112.35, while EUR/GBP jumped up from 0.8438 to 0.8512.

If you want to comment on the Euro’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Euro:

Euro Strengthens This Week a Bit (2010-07-17)Euro Weakens with Less than Expected Economic Growth (2010-07-14)Can European Economy Return Strength to Euro? (2010-07-13)Euro Drops vs. Dollar on Debt Crisis Concerns (2010-07-12)Euro Rises on Growth Outlook (2010-07-08)
This entry was postedon Monday, July 19th, 2010 at 6:21 pmand is filed under Euro.You can follow any responses to this entry through the RSS 2.0 feed.You can skip to the end and leave a response. Pinging is currently not allowed.

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