Even though the trade deficit unexpectedly widened in November, the US dollar is moving higher today. For the most part, US dollar is gaining as uncertainty prompts a certain degree of risk aversion. With rumors of an imminent French downgrade, a disappointing Italian debt auction, and worries about banks, it is little surprise that safe havens like the US dollar are in demand.

Japanese yen is gaining against the euro and the pound today, thanks to renewed fears about what’s next for Europe. Yen is lower against the US dollar, though, thanks in part to the re-emergence of the trade deficit in Japan. As long as concerns about Europe, and the banking industry, remain, yen is likely to find some strength against European currencies.

Yesterday’s enthusiasm has largely disappeared and risk aversion is back in fashion on the Forex market. US dollar is gaining against high beta currencies today as attention turns back to the troubles in Europe.

Euro is lower again today, dropping as concerns about what’s next in the European banking saga weigh on investors and Forex traders. EUR/USD is back below the 1.30 level, falling as concerns about the eurozone dominate.

Euro is higher today, gaining even though banks are still making high demands on the ECB’s marginal lending facility. A total of 14.8 billion euros were borrowed on Monday night. This wasn’t as much as borrowed last Thursday night, but it indicates that banks are still demanding emergency money from the ECB. Even so, the euro is higher today against most other major currencies.

Euro is fluctuating between gains and losses against the US dollar today in forex trading. The 17-nation European currency is looking for direction as forex traders prepare to close out positions as the year draws to a close.

US dollar index is rising as Forex traders look for a little safety. The news that the European Central Bank balance sheet is soaring, with new bank lending jumping, has many searching for a little stability. And that means that the US dollar has the upper hand against  high beta currencies right now.

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.

Uncertainty about what’s next for the eurozone is prompting gains for the US dollar today, with the dollar index moving higher, heading for the 80 level. Concerns about the eurozone once again dominate, and the US dollar is moving higher as a result.

Today, for the first time, the European Central Bank began offering three-year loans as part of a plan to provide struggling countries with the funding to avoid collapsing due to the debt crisis. Even though the measure is supposed to help eurozone countries, the euro has slipped against other major currencies.