Forex Tips | Forex Advices | Forex Blog

Many investors seeking risk aversion turned to the yen in the past few forex trading days, which helped strengthen the currency against many of the other majors. On the 25th of May, however, the yen cooled down, weakening against the dollar to post a USD/JPY high and low of 90.62 and 89.74 respectively. There are no changes in the overall economic assessment after the Japanese government said that the economy is still “picking up steadily.”

The euro took another tumble, breaking the three-day streak when the currency strengthened against some of the other majors. It looks as though the euro is still going to continue its downtrend that has resulted from the huge dilemma over the debts of Greece and Portugal, affecting economic recovery in the euro region.

The pound also weakened against the dollar on Tuesday. The GBP/USD forex pair traded at a high of 1.4528 and a low of 1.4352. The US dollar strengthened against most majors with weakening US stocks and a five-month high in April Purchases of US Existing Homes data.

It seems like the bad news from the Euro Zone just won’t ease up as debt troubles in Greece and other European countries continue to stunt recovery and even lead to worsening conditions. There has been much talk about the causes of these financial problems and how the non-federalized euro is failing in comparison to the federalized dollar. In the end, however, the results speak for themselves. In the forex market, the euro has reached an astounding four-year low against the US dollar and an astonishing nine-year low against the Japanese yen. As the EUR/USD continues on its bearish trend, the forex pair traded at a high of 1.2216 and a low of 1.1955 on June 7th.

Politicians, economists, investors, and business people around the world are worried about how this whole downward spiral is going to end and, perhaps more importantly, where it will leave the euro. The euro problems are getting increasingly more intense with every day and the most recent news comes from Hungary. The country’s leaders have announced that it is in economic turmoil and that it may have to default if things don’t get better soon. This issue is just another burden that continues to weigh down the euro.