Euro Tumbles

The Euro which provided many with Forex opportunity last week has taken a tumble in currency markets. The Euro had risen to a two month high and many took advantage of the forex investment opportunities offered by the Euro. The Euro declined against the US dollar because of remarks by Peer Steinbrück, the German finance minister who said the Euro was threatened if the European Union’s growth pact was not taken seriously.

German Official Expresses Concern About Euro

Mr. Steinbrück told Germany’s parliament that “If it is not taken seriously, I am telling you, the euro will have trouble one day in terms of its own credibility and stability.” The Euro declined 0.8% against the dollar and traded at $1.3429. The US dollar provided forex investment opportunities after Russian and Japanese officials said that the dollar’s status as the world’s reserve currency would not be a topic of discussion at the upcoming G 20 summit.

Dollar Rises Against Major Currencies

The US dollar also rose 0.9% against the Swiss Franc, 0.8% against the Aussie dollar, and 0.5% against the Canadian dollar providing many with forex opportunity. Forex brokers also noted that the British Pound fell 1% against the dollar. Data showed that the UK economy declined by 1.6% in the last three months of 2008, the worst performance since 1980.

Signs of Recovery

Revised fourth quarter data from the US showed that while its economy was shrinking at its quickest rate since 1982 the contraction rate was better than the predicted rate of negative 6.5%. This helped the dollar providing some investors with forex opportunities. Many investors see the better than expected data as promising signs of global recovery.

In the past two weeks investors have taken advantage of the numerous forex opportunities offered by the New Zealand dollar, Brazilian Real, and the Mexican and Columbian Pesos. Many forex brokers see signs of recovery and we can only hope they are right.

Quick Forex Tip: The International Currency Trading market has no central exchange like stock and commodities markets. Currency markets are dispersed throughout the world and the primary trading centers are, in order of importance, London, New York and Tokyo. The geographic dispersal means that markets are always open somewhere in the world and traders can jump on the internet and hopefully make very profitable trades at any time of the day.