In 2000, just as the new millennium was beginning and worry that the world would end was gone the Euro and USD underwent a period of parity. Argentina was suffering, unravelling in economic strength that required the IMF to step in. It was a different type of story for foreign exchange Melbourne and major markets like Europe’s. The Euro was entered into the market in 2000 at a rate of $1.16 USD. There was a rise in the euro, but it began to crash rather quickly descending to a value of only .84 cents USD. The USA was booming in terms of attractive assets and the whole economy.
Foreign Exchange Melbourne Traders Watch On
As traders in foreign exchange Melbourne watched and attempted to make profits in the market, central banks started working together in order to help the euro. Many bought euro reserves in order to increase its value. It helped little. The USD was very strong and the euro was just too new. Despite this strength role it was decided the symbol name for the pair would be EUR/USD. Usually the USD was in the base position because of its strength. According to the ISO the stronger currency as a rule is meant to be the base. Yet, it seems those naming this pair had a feeling the euro would actually become stronger. Indeed eight years after the initial launch of the euro and its slide into loss against the USD it has turned the tables. The USD is not worth less than the euro. In fact the euro hit a point of $1.50 meaning for every euro it can be traded in for $1.50 USD.
Parity is when value is equal. It can also be when brokers are bidding for the same product with an equal standing because of equal bids. This second instance is more likely with foreign exchange Melbourne traders since brokers were bidding equally to help strengthen the very new euro. There is unlikely to be an event in which a major world currency is formed. The euro was meant to help with European unity. It has combined some of the major countries and unfortunately some not so stable countries; all in all though the euro is in a good position.
Foreign Exchange Melbourne Gained another Currency
The start of the euro and its devaluation and its climb in more recent years has had a direct effect on Australia’s market. It has affected all of the forex markets around the world. It is a major currency. It is considered a part of the G7. A past event like this has more of an impact than something like the Zimbabwe dollar disappearing in 2009. While it is unlikely that another currency will be created like the euro in terms of combining several countries under one financial market, it could happen.
The future is uncertain in many markets, even foreign exchange Melbourne. Countries continue to fight for political power in the world. China is rising as an emerged country with strength and power. Russia is trying to regain its standing of the past. The USA is trying to hang on thus past events matter when you trade.
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