Euro Outlook Improves

The euro outlook appears to be improving in forex trading. Indeed, even though things are still a bit unsettled due to Greece, some of the fears on that score are abating. Now investors are turning to other information.

ECB officials are cautiously optimistic. They believe that recovery is coming, even though it might come slowly. GFT's Kathy Lien reports in FX360 on the current situation with euro in forex trading:

According to the ECB, rates are appropriate and inflationary pressures are low. Even though the central bank expects to gradually withdraw monetary stimulus, an uneven and moderate recovery is expected given their uncertain outlook. Compared to the rest of the world, the Eurozone faces relatively unique risks and the big deficits in particular will “place extra burden on monetary policy.”

Specifically helping the euro in forex trading this morning is a return to risk appetite, with U.S. stock futures pointing higher, and optimism about global recovery on the rise.