Euro Higher, But Can’t Maintain Above 1.42

Euro gaining in forex trading

The euro is higher in forex trading against the U.S. dollar, but it can’t maintain above the 1.42 level. The euro touched above 1.42, but has pulled back below that. Forex traders are concerned about the Irish bank stress test results, showing that more capital is needed.

However, euro hasn’t sunk on the news due to other factors. Higher commodities, especially gold and oil, are weighing on the U.S. dollar and helping the euro in forex trading. Also, some optimism related to the lower unemployment claims is helping the euro maintain relative strength.

So far, other developments have been enough to support the euro, even though concerns about sovereign debt remain, and Irish banking solvency is in doubt.

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