Euro Rebound Short-Lived

The earlier euro rebound was short-lived as risk aversion and uncertainty have taken the upper hand. The euro got a bit of a boost as selective Greek default was taken off the table. However, things have changed now.

Even though that option is off the table, euro zone leaders still don’t know what they will do, and the uncertainty is taking its toll. Forex traders are using the U.S. dollar as a safe haven.

However, the forex trading forecast may change again. As long as focus is on Europe, we are likely to see a weaker euro. But what happens as the debt ceiling debate drags on? When the focus shifts back to U.S. debt, the U.S. dollar is likely to suffer. 

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