Forex Success

Since its public appearance in 2002, euro´s price has not stopped raising. The euro´s quote at the forex market is one of the highest occurred in recent years.
Nobody would have imagined when it was created that one day this currency could overcome the American dollar, but the reality proved otherwise and in the year 2005, when the price of the euro touched the roof of USD1,19 in European markets.
By this time, the European Union is concerned about the euro, EU is at the of a recession, because the euro´s high price is reducing the export competitiveness. This overvaluation of the euro´s price benefits the imports, the country exporters and investors who bet their money in the foreign exchange market.
In europe, companies are pressuring the authorities of the european Central Bank to lower interest rates and take away strength to the currency of the euro zone, however, Jean-Claude Trichet, ECB president, has refused to take this step.
A strong euro”is bad” for the whole economy, was the message given by the Federation of Employers of Germany. In this country, the most dynamic economy of the EU, the 10 biggest companies lost business for 10,000 million euros in the first quarter. The situation that the european Union regarding its currency is the faceoff of what’s happening in the United States since the mortgage crisis, when the Fed has decided to cut sharply the cost of money.
The situation that the euro is facing hurts some productive sectors but is beneficial for the currency market since its high quote allows the operator to obtain higher returns and higher profits. We´ll have to see what will happen in 2008 with the currency that had its best time in the late 2007 when it arrived to USD1,50 per euro.