Preparing for a Potential Euro Selloff

Right now, the euro is higher against the US dollar in Forex trading. However, the gains are relatively modest, and there is the possibility that the euro will sell off later this week if US data comes in strong. Expectations of a rate hike in the United States persist, and the euro is still struggling with the Greek crisis.

Even though some think that the euro has mostly decoupled from the Greek crisis (at least for now), the 19-nation currency remains precariously balanced against its major counterparts. Today, the euro is making some gains against the US dollar and the Japanese yen, but these are relatively modest gains.

Earlier success against the UK pound has slowly disappeared, and the euro is now lower than the sterling. Expectations that good economic data out of the United States later this week will fuel rate hike speculation could also lead to a lower EUR/USD in the future.

Concerns about the euro, Greece and the situation remain, and no real solutions to the problems of the unified currency have been adopted. As a result, it’s unlikely that we will see much real progress for the 19-nation currency.

At 13:10 GMT EUR/USD is up to 1.0968 from the open at 1.0950. EUR/GBP is down to 0.7023 from the open at 0.7025. EUR/JPY is up to 136.0050 from the open at 135.8350.

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