Euro Manages to Hold On to Gains — For Now

Euro is managing to hold on to some of its gains for now. Euro saw some small success against the US dollar yesterday, and is working to keep those gains today. For now, the euro is receiving some help from European leaders, but Forex traders will need to get on board if the euro is expected to see any real advances anytime soon.

Euro’s current gains come ahead of a meeting scheduled between German chancellor Angela Merkel and International Monetary Fund managing director Christine Lagarde meet to discuss the eurozone crisis. Yesterday, Merkel met with French president Nicolas Sarkozy to work out rules regarding European Union fiscal policy.

While European leaders insist that progress is being made, they have yet to present a plan that appears effective in resolving short-term sovereign debt and banking issues, as well as a feasible long-term plan for preventing another crisis in the future.

All of this means that the euro’s gains are limited for now, and that, at the first sign of trouble, the euro could easily plummet. Forex traders aren’t yet on board, and it will be some time before they feel comfortable with the situation.

At 14:14 GMT EUR/USD is higher at 1.2793, up from the open at 1.2766. EUR/GBP is higher at 0.8265, up from the open at 0.8257. EUR/JPY is up to 98.3120 from the open at 98.1050.

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