10th January 2012
The European single currency has managed to hold on to its recent gains against the US dollar after traders covered their positions by betting the pair will diminish in the future.
According to the Wall Street Journal, forex trading so far today (January 10th) has been relatively subdued, with a lack of headlines meaning global markets are awaiting news of today's meeting between German chancellor Angela Merkel and International Monetary Fund president Christine Lagarde as the pair are set to discuss ongoing debt worries in Greece.
HSBC New Zealand chief manager Daniel Brdanovic told the news provider an ongoing source of concern is that "everyone in the market is short euro and that means there is potential for it to correct quite sharply".
Yesterday, the euro fell to a 15-month low against the US dollar before making a recovery by the close of the Asian trading session. The fall came as a result of ongoing fears over debt contamination from the eurozone.
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