Euro Pulls Back in Forex Trading EUR/USD retreats on currency market
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 has moved on to the 1.56 level in currency trading on the FX market. As a result of help from the risk rally on the currency market, sterling has hit a 5-month high.
Bank of England officials have appeared before Parliament, and have assumed a more hawkish stance on the British economy. Committee members were mostly upbeat in their testimony, expressing cautious optimism, and forex traders responded by sending the sterling higher in forex trading.
The good news might be overruled, though, with concerns about durable goods orders in the U.S. So far the risk rally remains mostly intact, but concerns about the sluggish economic growth could result in its coming to an end.
The U.S. dollar is slipping in forex trading on the currency market today, falling as forex traders consider the implications of economic data.
Indeed, there is an interesting dynamic on the currency market right, with the U.S. dollar lower against high beta currencies, as well as down against the Japanese yen. Forex traders are a bit cautious, and helping the yen firm, but at the same time are concerned about the performance of the U.S. economy as opposed to the European economy.
For now, the U.S. dollar is down across the board, lower against the euro, pound and Aussie, but also struggling against the yen.