The EUR USD is trading weaker overnight after a slump in Greece bond sales helped escalate worries about European sovereign debt issues.

The Euro finished higher on Wednesday after reversing earlier weakness following a weak assessment of the U.S. economy by the Federal Open Market Committee. Based on the overnight action, it appears that this was short-covering rather than new buying.

Most investors generally like to diversify their portfolios and use asset allocation in order to reap the best profits for the least risk. We believe that this is a good time to reallocate your assets as we are beginning to see the transitions from a bearish market to a bullish market.

Reacting to your P+L is counterproducive and perhaps even detrimental. Here's how to view it usefully. Originally posted May 21, 2008.