Recent EUR/USD strengthening

Since today’s news of the BNP Paribas situation, the EUR/USD has been dropping slowly. Expect this trend for the next day as global markets continue to become anxious about the subprime crises and its recent developments. These concerns strengthen the USD because more investors revert to its safe haven status. Until these recent worries subside in financial markets or the EU posts strong economic data next week, go short on the EUR/USD.