Euro Trades Higher in Forex Trading

September 23, 2008 by Trader Rich

Deficit worries push U.S. dollar lower in currency tradingThe euro is trading higher in forex trading on the currency market this morning. Even with eurozone contraction in terms of economy, the euro is still gaining against the U.S. dollar in currency trading.

For now, this is due in large part to the fact that the U.S. economy is currently bogged down in a financial crisis. Congress is debating the merits of a bailout plan that could add trillions of dollars to the deficit.

On top of worries of deficit, there are also concerns about the conditions that the Democrats may impose on the bailout. This is expected to slow passage of the bill. It is expected that once things calm down in the U.S. and the economy starts to recover, the euro will drop in forex trading.