By CountingPips.com
The US Dollar has been trading lower in forex trading today against most of the major currencies as risk appetite has re-emerged on the possibility that the EU will come to the rescue of Greece, which is struggling with a major government debt problem. A report out of the Wall Street Journal today said that the German government may provide
The euro advanced higher on the speculation of a Greece bailout and climbed over 100 pips against the U.S. dollar today. The euro also traded higher against the Japanese yen, British pound, Canadian dollar and Swiss franc. The Australian and New Zealand dollars rose versus the European currency in today’s trading.
The euro fell to an eight and a half month low last week versus the U.S. dollar as the Greece debt problem really took center stage and spurred investors to flee riskier positions. Futures bets against the euro climbed to a record high as of February 2nd, according to the Commitments of Traders (COT) report by the Chicago Mercantile Exchange. Non-commercial futures positions were net short the euro by 43,741 contracts after being net short by 39,539 contracts the week before as net short positions have increased for four straight weeks. The COT report is a useful tool for traders to gauge investor sentiment in terms of positions in the futures market.
Meanwhile, the U.S. dollar was on the losing end of trading today against most of its major currency counterparts. The dollar fell versus euro, British pound, Canadian dollar, Australian dollar, Swiss franc and the New Zealand dollar while gaining against the Japanese yen.
The US stock markets had a winning session today after a down day yesterday with the Dow gaining by 150.25 points, the Nasdaq increasing 24.82 points and the S&P 500 up by 13.78 points. Oil traded higher by $1.86 to $73.75 while gold gained by $11.00 to $1,076.70 per ounce.
EUR/USD Chart – The euro on a two-day upswing in the forex markets against the U.S. dollar. The EUR/USD reached a high above the 1.3830 level today, just touching the 200-hour moving average in blue before retreating lower.
