By James McKee
The Euro has seen its fair share of trouble in the last 48 hours between renewed concerns about Greece and growing uncertainty about the effect the bailout of Ireland will have on the Euro Zone. Investors are running scared in light of this new information and are not likely to return to the AUD, NZD, or EUR until this situation has been sorted out to some extent. Despite these troubles the USD has managed to still fall against the EUR, possibly due to the fact that the USD is undergoing its own troubles from the recent actions of the Federal Reserve Bank in an effort to provide quantitative easing.
Problems in both the US and Europe are growing to fruition as austerity measures are being imposed in both countries. The austerity measures in the United States have not been fully realized as of yet but if the US dollar continues to drop in value there are sure to be serious modifications to the level of effort being made to curb spending. The Great British pound has been doing remarkably well recently and it would be a good idea to use the GBP paired with any Euro Zone currency provided you can apply due diligence during the trade. The Forex currency exchange is a rather scary place at the moment and should not be treaded into lightly.
Austerity measures, quantitative easing and other efforts are sure to result in inflation in no time at all. The countries who are not practicing this behavior (or are at least doing it less) will be the ones to bet on in the near future. Intraday trading of any type is not advisable currently in light of the severe instability across the board of every major currency. The minor currencies would also be a bad idea to jump into for a long period since most of them are dependent on the US dollar which is having its own woes.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.