Spain’s banking sector is driving the euro lower as Forex traders worry about the pressure being put on the 17-nation currency. Spaniards are sending money abroad, creating a bank run, and that is only making things worse for the financial sector.
Cautious optimism is the watchword today, and that is helping other major currencies against the US dollar. Greenback is lower today as Forex traders find some reasons to look forward, and as some believe that, perhaps, a solution can be found that will keep Greece (and Spain) in the eurozone.
Japanese yen is on the rise again, heading higher as concerned Forex traders look for safe haven assets. The yen is considered one of the safer currencies, and with all of the turmoil and uncertainty in Europe, it is one of the currencies of choice.
US dollar is rallying as risk aversion takes hold of the markets. Financial markets are falling everywhere, from high beta currencies to stock markets. Concerns about the eurozone are mainly driving today’s risk averse atmosphere. With so many concerns, it’s little surprise that the US dollar is heading higher.
Today, Spain’s woes are in focus, and that is sending the euro lower. EUR/USD is below the 1.2500 mark, and possibly heading even lower, thanks to concerns about Spain, as well as uncertainty about Greece and uncertainty about how the Irish will vote tomorrow when it comes to the European Union’s fiscal treaty.
US dollar looks to end May with relative strength, thanks in large part to safe haven demand. Even though the euro is inching higher right now, on the month the US dollar is likely to log gains. Greenback is still higher against the yen and the pound, and the euro’s gains are by no means certain today.
Canadian dollar is seeing small gains today as oil prices rise a little, and as a bit of optimism returns to the markets. There are hopes that Greece will remain in the eurozone, as well as some expectation of a eurozone solution to the sovereign debt problem. All of this is providing a boost for the loonie.
US dollar is mixed in Forex trading, with markets somewhat choppy today. Greenback is once again higher than an embattled euro, but the US dollar is lower against commodity currencies. It looks to be an interesting day on the Forex market, even though US markets are closed for the Memorial Day holiday.
Earlier, the US dollar fell back a little bit on the Forex market. However, the greenback is once again higher against its European counterparts, gaining as uncertainty over Greece — and other countries in the eurozone — continues.
The Japanese yen continues to appreciate against European currencies, thanks to the uncertainty in Europe. Concerns about what’s next for the eurozone are weighing on risk, and the Japanese yen is once again being used as a safe haven currency.
