Having been launched in 1999 and in general circulation since 2002, the Euro is one of the most prominent currencies in the world at the moment. With over 360 million people using it across Europe, the Euro is one of the best-known currencies and, as such, plays a large part in the forex trading system. At the moment, owing to several factors and events that have effected world currencies on the whole, the Euro is at an all time high, thus throwing many individuals’ currency trading strategies into disarray!
The Euro is at an all time high largely because of the sub-prime crisis in the USA. The dollar has considerably weakened, and the Euro and US dollar have always been inextricably linked. This has often led to strong fluctuations of the Euro in the past, with the currency jumping up or down in the region of two points in several of the years of its existence. However, its current level of around 1.4113 against the dollar is much higher than its previous December 28, 2004 all time high of 1.3633. As you can see, the Euro’s history has been one of great fluctuation, thus cementing its status as one of the major players in the forex trading system as a result!
Many individuals that have invested in the Euro via fx currency trading have amassed a good return as a result of shrewd currency trading strategies. By watching the Euro’s fluctuations during its short history, many individuals have been able to identify the signs of its relative strengths or weaknesses affecting its price in advance. For example, the European Central Bank has recently voted against raising interest rates, despite the fact that the manufacturing industry is currently weak and the financial industry within Europe has remained unstable, but if they have to make the decision to raise interest rates again then the likelihood is that the Euro will again fluctuate.
Just as the US Dollar and global events have contributed to its current all time high, both factors have indeed played a part in its historical highs and lows too. However, the unstable global financial climate at the minute means that more fluctuations are likely in the future. As a result, fx currency trading can indeed be used to make a lot of money at the moment if an individual makes the right decisions. Although the European economy may not benefit as a result of the recent high, the skilled forex trader certainly will!
A freelance writer who publishes articles which are of interest to readers. For additional information on Forex Trading, please visit http://www.lyonsforex.com