The Canadian dollar is struggling against the US dollar in Forex trading today. Indeed, the loonie is one of several currencies dropping against the dollar as Forex traders look for safe haven in these difficult and disappointing times. With Chinese growth slowing, and the European sovereign debt crisis still in full effect, Forex traders are starting to get nervous about what’s next.

The New Zealand dollar fell today, reaching the lowest level vs. the US currency in almost 6 months, following the sovereign credit rating downgrades performed by Standard & Poor’s and Fitch Ratings agencies.

Risk appetite is making an appearance today, helping the euro in Forex trading as investors look for better yields. Unexpectedly good news has many Forex traders considering that things might start turning around — and this is helping the euro right now.

Both the Australian and the New Zealand dollars appear to be benefiting from the Asian stock market recovery, rising from the yesterday’s strong fall.

Earlier today, the UK pound was falling in Forex trading. A drop by the FTSE 100, as well as concerns about bank capitalization, were among the factors causing losses for the sterling. Now, though, things have turned around a bit — at least against some currencies. Concerns about the eurozone had been weighing on the sterling against the US dollar, but new prospects for stability in the euro region are helping the situation.

The euro is rising for the fourth day in a row on the Forex market today, following the successful pass of the anti-crisis vote in Greece, “stability bonds” talks in eurozone and a possible revival of the corporate bond market in Europe.

The euro is finding support on the assumption that the sovereign debt crisis will be contained. Many forex traders seem to think that European leaders are serious about finding a solution to the debt crisis, and that it will be contained.

The Japanese yen fell against all of its major counterparts today, including the US dollar, as the optimism regarding the European debt troubles situation changed the risk-averting mood of the markets to positive.

One of the difficulties associated with making progress on the sovereign debt crisis, and bailing out countries like Greece, has been foot-dragging from Germany. Angela Merkel, the conservative German chancellor, has seen divisions over the matter of eurozone bailouts in her coalition government.

The British pound grew strong amid the European debt crisis and the downfall of the stock markets and commodities, falling against only two out of sixteen most-traded currencies today.