Euro Ends Day With A Flourish

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Etoro

Online Forex traders at eToro and other sites across the internet have been keeping a keen eye on events in both Cyprus and Italy today, especially if they’ve recently bought EUR/USD positions. This is because, in the midst of a woeful run for the single currency, pressure for the euro has been further compounded by the requirement of a bailout for the Cypriot economy and political unrest in Italy. However, even though the EUR/USD currency pair hit a four-month low during early Thursday trading, the euro ended the day with a flourish, actually finishing marginally up against the US dollar when the London trading session closed.

Earlier today, the banks in Cyprus opened their doors to customers for the first time in weeks and, even though a €300 euro per day limit is in place to avoid a run on the banks and further economic pressure, the opening of the banks has been seen as a good sign, even if there’s still massive uncertainty regarding Cypriot’s money.

Additional pressure is being placed firmly on the euro’s shoulders by the political uncertainty in Italy. It looks extremely unlikely that a government will be formed by centre-left leader Pier Luigi Bersani, which will mean a re-election will need to take place and we all remember Greece, right? If you don’t remember what happened to the value of the euro following Greece’s need for a re-election, there are plenty of online Forex traders at eToro who would be only too glad to tell you what happened to the price of the euro in the wake of Greece’s inability to elect a government at the first time of asking.

So, even though the euro finished the day ahead of its opening price, confidence in the single currency and confidence in the EU as a whole is still wavering, with many traders avoiding the single currency as an investment option right now. If you want to try your hand at trading Forex online, pay a visit to leading Forex site eToro at www.etoro.com, where you can open a free trading account in minutes and where you can trade real time and real prices but with demo credits, which is a great way for new traders to learn some skills before risking their own money.