Forex market jitters over Egypt

2/07/2011

The flare up in Egypt between forces supporting the President and those wishing to see him deposed has added to a rising atmosphere of uncertainty in the region which has pulled some investors away from their recent risk-taking. Whilst the Euro has been making modest gains recently over the last few days the turmoil in the Middle East has put an element of risk appetite in the region onto unstable ground.
The Euro, which comprises 17 nations in common currency, has seen recent gains against the dollar, many investors preferring to move into the higher risk, but higher yielding assets of European and Pacific area countries. With the current situation in the Middle East a tug of war exist between the pessimists on one side and market optimist on the other, traders should expect wide swings in the value of the Euro as global events play out and affect risk appetite.