On forex trading on Monday euro was seems to be sliding against the dollar and they had just tracked that it is now under a worst pace since December. With no expectations on the slippage on the recession of Spain nd the German retails sales seems to be softer than expected and that however pushed to euro zone pressure.

As the euro is the common currency among the euro zone and as their comes the election in France and Germany the European central bank have meeting and they may face some sentiments and that would further knock euro down.

Investors felt that it’s not a good period to buy euro in these weekends. Two week peak against euro and two month high against dollar, Yen had a very special week and as a gainers of the day praise.

Investors felt that the Japanese currency seems to be safe in the global market and free from all the economic worries which are earlier faced by euro. The news about the euro is getting worse as the day pass but they are still in range as statistics revealed.

Generally the US data would be weak and now they are fed into the risk mode to rise they range of currency value. US economic recovery has been losing their momentum at once as the euro failed to meet the gain transaction.

The report said that they occurs 0.4%increase with that on the household expenditure spent is 0.3%. On Monday euro fell 0.2% and reached $1.3228 against the dollar value and on Friday it was actually at $1.3270 the average marked at $1.3205 where the euro stayed on for long time.

Harsh measures deeply have interfered in the recession on the Spain and so the euro zone economies slipped away. Only two percent fall of dollar seen over four months and its opposite in case of euro.

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On the close of Friday, euro seemed to be high against dollar this incident happened just after when 17 nations included the euro to their bailout fund for their respective country which troubled them lot in the debt. The emergency fund was raised to 1.1 trillion dollar which was raised by euro group.

New conservation government unveiled 36 billion dollar plan which included the expenditure that is planned to be spent and rise of the big multinational companies, Spain informed. The austerity measures that is been taken will prevent it from having the bailout fund, country said.

On Thursday, euro was at $1.3287 and on Friday it rose to $1.3334 which means the rise is approximately $0.047. This week alone its 0.5% high and statistics rating imply that for this year the status is to reach up to 3%. Dollar is too low against basket of international currencies.

In February month the consumer spending rate rose to 0.8% which was reported by the Commerce Department, USA. Dollar range is different for different countries and the USA economy seems to rise in very slow phase and that is so steady.

British pound rose to $0.0067 against on Friday. Against Swiss franc the dollar fell to 0.9029 from the range of 0.9074 which is approximately 0.0043 Swiss francs down. Only against the yen dollar has raised. From 82.40 to 82.86 it raised which is 0.46. Markets may be judging the rise or fall however that is too convincing.

The monetary stimulus of USA is helping the euro to hold to prevent the debt crisis. Europe’s sovereign debt crisis may flare up as the euro zone ministers they have agreed on temporary increase in the capacity on bailout funds.

Euro still vulnerable to the further selling pressure and their debt levels are very unsustainable. The dollar index is one month 78.727 under pressure from the Federal Reserve chairman.

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On Friday, dollar investors said that dollar has showed off its best jump against various currencies in this year. Even when other economies seem to struggle the US economy is still strong by the strong jobs data that it possess. This is dollars best run in almost 5 years.

With the 11 month high against yen it is been at 82yen per dollar. The greenback reported that this is the fifth week gain of the dollar against Japanese currency. In spite of the fear that is prevail about the euro zone recession, the euro value is been taken down to 3 week low and now at $1.3095.

As clearing the emergency aid for the euro, the Greece debt burden is been cut out and that had made a swap of the debt recession of the euro. Payrolls of US citizen have grown for about more than 200,000 this year and however the employers added as 227,000 just in this February.

Head of research of GFT forex trading, Kathy Lien said that we have right places for the dollar to fall into and the general of US feel more comfort about the economy mood of the US. He also added that the equities market range are at good rise, consumer confidence is also at its rising edge and the companies seems to have greater range in hiring people.

Head of currency strategy, Nick Bennenbroek said that US economy has a steady improvement against the European economy and this situation tends to increase the challenging situation of the countries.

Euro may face severe pressure from next week forex trade and after the industrial group said there is a swap between the Greece debt and euro debt. They have signed he default insurance contracts which worth more than $3 billion. USA had made its tie up with countries which have strong trading value.

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On Friday trade, the sterling was found to be strong and steady against dollar and euro. Nevertheless the investors were eagerly waiting for the Greek bailout deal that they believe it would turn out to be positive and signed approved in the upcoming week.

Pound is expected to be weak as the pressure was severe for it in selling the retail sales data. This steady status of the sterling is also because of the development by the Greece country. The risk is stated that the pound is underperforming against the dollar and outperforming against euro.

Greece is more awaited on the euro zone finance minister to approve and sign on the Greece bailout deal on Monday and this will however result in the bond holders to look at the sterling. Greek peoples are trying to avoid the disorderly default.

At the close, euro was 83.08 which is 0.1% down against sterling. It was reported to be very steep fall against sterling. Regardless the focus of all the investors is on the Greek deal. Against pence it is at 82.64 on the trade close on Friday. The 17 month low was marked as 82.22.

Michael sneyd, strategist said that euro is much correlated between sterling and dollar. And so the movements should be noted very keenly and today’s movement will be twisted into anything on Monday after knowing the results of the Greece deal. Sterling will be much affected with that of the bailout deal result.

The correlation could be broken up by a weak retail sales data they would be adverse the effect only by the stronger sales range. However the weaker retail sales data will have minor changes in the sterling. Two week low of sterling was at $1.5644 on Tuesday and at the flat close on Friday, it was at $1.5799.

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In the past, a currency market was divided largely by geography and technology. Even the ancient trade markets had barriers in language and transportation. Today we have so many different currencies since over time they evolved naturally into what we see today. Centuries of necessity and barriers that no longer exist; are we ready for a single currency money market? With the advent of the internet, the world is so intrinsically connected that it would be a simple task to get up to date news from the other side of the world instantly. The world truly becomes one big connected playground with the only thing holding us back being a 6-hour sleep period recommended for a healthy life.

Advantages of a Single Currency Market

When considering the trading of single currency in the market, there are always going to be advantages and disadvantages for every global change. One of the advantages of a one world currency market; foreign exchange would no longer be a term since we’d all be citizens of the world. We’d all share the challenges and difficulties with each other rather than profiteering off of weaker countries. The forex currency market would have to evolve into trading different commodities, which in itself is a point that has both pros and cons. With a single world currency, there would be no need to verify or exchange values of currency resulting in much quicker bank and market transfer times. Typically it can take several days for an approved transaction to go through; sometimes this really limits the possibilities of your trading the currency market.

Disadvantages of a Single Currency Market

However, the disadvantages of a single world currency is something far more forex traders actively speak out against. The biggest warning sign is the Euro Zone crisis; if 17 countries cannot operate under a single currency, how would the entire world fair under one. One futurologist suggested we’re more likely to invent and operate communication through telepathy before a single world currency will exist. The highly flexible currency market rates put to death and give birth to many currencies, but it’s unlikely any one world currency will become a reality any time soon if at all. One major problem is that if a single world currency were to fail, there would be nothing else to trade against and monetary value as we know it would collapse.

The Reality

So while a romantic notion, the idea that the world could function and survive on a single world currency is something best left for the science fiction novel. Computer chips in our arms controlling our monetary value and operating a single worldwide currency sounds convenient to the individual, but the truth is the business world requires what’s best for entire companies to aid survival. The currency market simply isn’t ready for one worldwide currency and we’re definitely better off without it; for now.

Eugene Calvini is a writer and an avid forex trader; observing MT4 indicators and armed with a Metatrader 4 demo account he shares his experience and unique insight into the currency markets.

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On Friday, the sterling was high against the struggling euro. The euro for past week it was reported to be 16 month low against dollar however on Friday they said that euro has been at 17 month low.  Later on a day count the sources for the euro zone government informed that the Standard & Poor cut the ratings to low grade.

Warning was made on December regarding the cuts in the rates. This lower of rating has been across several countries and even the Germany was not included in the list. The sterling fell down against pence for about 1% and reached to 82.78 however it was roughly high against single currency (euro).

Noticing the statistical graph between euro and pence, the euro is noted to be at 82.22 pence. It was the lowest noted level since September 2010. Nevertheless the exporters and traders think that the euro zone debt crisis has reached a greenback that is it has finally got a back up. The pound (sterling) is tracked to be low not alone against the euro but also against dollar as well.

At July 2010 the objective barrier was set to be $1.5250 but it was breached to some low at $1.5234 which is 0.7% low. In the retracement of rally in the pound the 61.8% improvement is seen for sterling. The level of demand that is being expected was not achieved but on other side the Italy sold 4.75 billion Euros in the debt. Sterling is the single currency which is at some sentimental risk.

On Thursday the stellar sale the Spanish bonds however the Italian debt auctions also possess some reasonable pressure but not the expected demand. The BOE (Bank of England) will ease the monetary policy a so in the nearer sates the analyst has detected that pound could face some pressures.

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On Friday the euro has rosin against the dollar however few days back it was 5 week low against both the dollar and yen. However, the traders were not aware of its rise anyway. The fear of euro was intensifying before a week and it is not anymore. The investors who had their bet on this single currency “euro” have been unwounded and they have their profits in hands.

The thirst to sell the upticks has been increased with the debt crisis in the euro zone. Pressure is been resting upon the ECB (European Central Bank). Real money investors and other demand on the bond buying programme with the Spanish and Italian however their final close would be unsustainable. Any sort of gain in euro would be fleeting until any relief is been bought as solution to pressure of ECB.

There is much other ways but no one is willing to look in the counter view of the euro and apart from that it would never be an immediate solution to it said a senior currency strategist. In the five week low, euro was at $1.3421 and now after rising it is at $1.3510 which is 0.4% rise. On Thursday it has 0.4% rise and roughly on this week it is just 2% rise.

Retrieving from the last month value of 76.4%, the statistics established as on October 4 it was at $1.3145 and on October 27 it reached a high value of about $1.4248. Now the single currency value is round $1.3405. Forex trade may be swapped out in the euro ranging between the values of $1.355 to $1.3550.

The European Central Bank said on a note that the courageous and active participants would sell the euro for around $1.3550 to $1.3560. They would be shortening euro against the dollar and yen with the value of $1.3650.

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On Friday forex trade rupee was reported to be 37 paise and has hit a one year low and reached about 46.56 against dollar. The fall in rupee is mainly due to the steep fall in the local stock markets and strengthening of dollar values overseas. The weight or burden of the dollar strength has however reflected on the rupee to be down for a while.

Importers have nevertheless demanding long for dollar and thus flow of the capital is slow down and thus the rupee is been neck stuck and lowered for 37 paise. The interbank forex market trade fairly started from a low domestic unit as 46.26 against dollar whereas at its close it was at 46.19 per dollar. As a chain reaction it still lowered to 46.58 and further to 46.56 which is fall for 0.80%.

Brahmbhatt, financial services CEO said that the sustained dollar demand and expectations of the bank committee members of the firm against dollar overseas has an added pressure on the rupee lowering. Local equity markets were weak by 2% which was nearly the weakest level recorded in the year which has depreciated for about 0.75%.

Oil importers demand for dollar and euro has however much favor against rupee didn’t. On the year 2010, dated September 8 rupee was at 46.63 against dollar where it was down for 77 paise because of the local stock markets and 1.68% low. Jean Claud, European central bank president stated that they accept their weakness in the European economy.

He also added that the low growth in euro zone will however, risk the forex market zone. Swiss franc was about the fixed rate of at 1.02 levels against the euro and dollar and thus they have reduced all the safe and alternative phases and strengthened the dollar range across the globe.

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On the Tuesday trade the euro has been dropped against dollar for a record of four month low. The reason the low would the plague at global market and fear that whether the Greece debt crisis would spread all over. The Spain and Italy was the region of target that had more chance in spreading up. In Tokyo trade rate the single currency valid at $1.3958 and they have dropped from $1.4029.

In the New York trade rate on Monday it was around $1.4029 and they reached slowly down and now at the four month low record at $1.3932. Euro was the cause for the value of yen to be lowered. It caused about 0.69 lower in yen. It was previously at 112.51euro and now at 111.82euro. However, dollar increased a little in this conflict. It is now at 80.24 and previously was at 80.11.

Italy and Spain would the next region that had their borrowing cost to soar and that was noticed clearly on Monday trade. In that fear, the euro zone minister had a meeting at Brussels where they discussed about the new rescue package. They had sworn that they would surely see to the enhancing feature of the European financial stability and facility. The fund of about 440 billion euro is lent to euro zone nations.

As in dollars the fund would reach up to $617.1 million. Christine Lagarde, international monetary fund MD said that the Greece had taken efforts to close their budget gaps however it seems to be effect less as they are not sufficient. Dollar strength among other Asian countries is quite strong enough and rising.

Government managing people and the policy makers find that difficult to make decision as the crisis been an obstacle for their development phase. The pressure could at release only when clear and strong agreement is being made with Europe.

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Since Thursday Swiss franc is low against euro. On the forex trade on Thursday the Swiss franc fell against euro and the reports concluded that this state will prevail and the debt crisis for the Greece will be soon resolved. Swiss franc had its all time record of being at 1.1946 however at the Thursday trade close at regarding the New York forex trade, the Swiss franc was at 1.2033 per euro.

Investors has dragged the Swiss to the safe zone of investing over the risk area values but on Thursday the Swiss national bank (SNB) announced about the strength that it is being going through however investors ignored them from accepting, this reason has caused the Swiss franc to be low against euro and dollar.

Regarding dollar, the Swiss franc is currently 0.8499 per dollar. Swiss national bank has taken some advantage over Swiss franc when the value graph shows some kind of inflation and deflation risk in it. SNB (Swiss national bank) has been intervened between the forex and the franc in the periods of March 2009 to the extension of June 2010.

The unbalance and uncertainty of the European peripherals has supported the downside risk between the ranges of euro and Swiss franc. Their support has brought them to high level up to 1.1930 and 1.1850 regarding euro and franc respectively, said by analyst in one of his research note and he is named Marcus Hettinger.

The quarter monetary policy assets have been warned by the Swiss National Bank (SNB) on that Thursday. Nevertheless the Swiss franc was strong enough at its margin level of its Swiss exporters and during this the Swiss national bank also reported that they are planning to sell off the Swiss franc to boost its rise. Euro zone extended emergency loans from finance minister.

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Euro has been at greater heights for eleven months and now it has been slipped back from highs. On the Monday trade the euro value slipped from yen. It was high for five month against the value of dollar. According to the view of analysts, the euro zone higher rates are increasing in the trade market.

On Wednesday, Japan has been planned to publish the economic assets. Tightening the policy in the United States regarding the uncertainty and the view of the working officials on the Federal Reserve said about the downgrading of the economic assets by the bank of Japan.

The central bank of Europe is likely to increase the interest rate by 25 basis points and it marked the value to be low on the trade on Thursday. The euro seemed to be resistance at $1.4281 on the highs of November and however it was relaxed at $1.4230. In the recently marked highs it was raised to $1.4269 against the value of dollar.

Nevertheless of this rise and fall of the euro currency now a day, it’s reached its peak in July 2008, where it was regarded to be at $1.4300. Against the value of yen the euro is now at 0.1 percent low, which is 119.55. It reached 120 last since 2010 in the month of May.

The interest rates and gradual changes can be well noted for the changes at dollar/yen against the common euro rate differences. Dollar is strong enough at the value around 75.786. In the war of yen vs dollar, the dollar was at 84.735 values but on the opening trade it was at 84.04 yen.

Dollar was up for 11% where on the value of yen were 76.25 after the periods of world war.  Aussie had a shift from 87.69 to 87.25 against yen. Aussie against dollar was at $1.0420 to $1.0400.

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Euro is the relatively new currency first introduced by the European Union in 1999.The currency has been adopted by the 16 countries of Europe. They are collectively known as Euro zone.

The EUR/USD is the most widely traded pair in Forex. Both the currencies are powerful currencies. The dynamism and high trading volumes of the two currencies make them very liquid, creating greater opportunities of profit by trading them. Oil is bought and sold in Dollars. Thus heavy trading of dollars takes place through out the world. The euro and dollar are the only currencies, which largely traded.

The movement of the currency pair rests on the following factors:

• Economic performance

The individual economies of both the currencies cast an influence on them. If USA witnesses higher economic prosperity than European Union, the dollar becomes stronger, if vice versa, the Euro strengthens. Interest rates, balance of trade etc are the key indicators governing the rates of the currency. It the interest rates are higher in America, the dollar becomes more expensive against the Euro.

• Political Stability

He recent times have seen lot of political instability among the countries that are the members of European Union. Political conditions are the deciding factors of monetary and financial reforms in the country. There has not been complete peace among the various countries, leading to decreasing rate of euro.

Trading of EUR/USD pair, trade regularly hedge. Hedging is done to minimize the risk. There is a high risk involved due to the high volatility.

The currency pair leaves no room for arbitrage. It is because here are no pricing fluctuations. Any deviations in the market are quickly rectified.

There is less of a difference between bid ask prices. Bid ask spread is low. This lowers the risks of the traders. Therefore the euro dollar currency pair is traded more than the other currencies in the forex.

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Currency exchange is an important aspect of international business. Economic development, trade, tourism, finance and many other important aspects of the world economy are dependant on this.

The main global currency is the U.S. dollar (USD). This means that it is the currency held by governments and organizations around the world to fund international trade and financial transactions. Many global commodities, such as oil and gold are valued by the U.S. dollar.

Currencies can be distinguished as either floating currencies or fixed currencies based on their exchange rate regime. Currency of the European Union, the Euro is rapidly becoming a dominant global currency. A huge percentage of daily trading on the foreign exchange is made up by the Euro and the U.S. dollar. This is according to the Bank for International Settlements, based in Basel, Switzerland.

In the rest of Europe, the British pound (GBP) and the Swiss franc (CHF) are strong currencies that remain outside the Euro zone although the United Kingdom and Switzerland are members of the EU.

A powerful global currency The Japanese yen (JPY) dominates Asian markets and challenges the Euro and the U.S. dollar for world dominance.

For Australia, New Zealand and Canada their currencies are known as dollars and these dollar currencies are commodity-based, which means their value floats with the value of the country’s foreign trade. Nicknames of these currencies are the Aussie, the Kiwi and the Loonie.

Currencies are the emerging economies in South America, Africa and Eastern Europe is most exciting now. There are a number of factors which affect the value of a currency like the political conditions of a country, economic situation, perception from outside, demographics, war and conflicts, weather factors such as drought, famine, tsunami, earthquake, floods and so on and education, natural resources, isolation vs. openness

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