Most Western stock markets may be closed today, but Forex trading is happening nonetheless. Trading is relatively thin, though. Right now the euro is gaining against the US dollar on expectations of an economic recovery for the United States, and possibly the world.

The Japanese yen is a little higher today, thanks to the strength of Japanese exports and gains made by the Nikkei today. Stock markets in the United States and many other major cities were closed today for holiday, but the Japanese markets were open, and the gains reflected optimism for the economy.

The US dollar hasn’t gone very far in any direction, be it to the upside or the downside, in 2011. The currency was falling in the first half of the year on talks about a quantitative easing and hopes for Europe, but reversed its trend in the second half. The greenback has a potential to go either way in 2012 depending of a way the European issues will be resolved and decisions the US policy makers will make.

The Australian dollar rallied this week as optimism returned to the Forex market on the positive signs from the United States. The flow of bad news from Europe paused for a time, easing concerns about the sovereign debt crisis.

The Australian dollar gained against the euro and closed higher versus the greenback today as signs that the US economy continues to recover reinforced positive mood on the Forex market and increased appeal of higher-yielding currencies.

The US dollar erased its losses against the euro today after a report showed that France’s GDP increased in the last quarter less than was previously estimated. The greenback rose versus the pound, but dropped against the yen.

Swiss franc is lower today in Forex trading, dropping as leaders warn that more job cuts are likely on the way in the country. Swiss companies expect to see weaker sales going forward (an outgrowth of the recently strong franc, which puts Swiss companies at an export disadvantage), and the news means that job cuts are likely on the way. Additionally, Swiss financial leaders reiterated their commitment to a weaker franc.

Euro remains vulnerable in Forex trading, thanks to the still-unresolved eurozone debt crisis. The 17-nation currency is flat right now, slightly lower, ahead of the holiday. Trades are winding down, and the euro is still likely to run into trouble against safe haven currencies like the US dollar and the Japanese yen.

The Great Britain pound fell against the Japanese yen and erased its gains versus the US dollar today after the report showed that the banks approved less home loans in November than in the month before.

The Bank Rossii (Russia’s central bank) unexpectedly lowered its main interest rate today on the concerns that the inflation decelerates. The Russian ruble is still up against the US dollar despite the news.