By James McKee – Tensions over failing measures in Europe to stabilize the economy there have resulted in a series of riots and public demonstrations in which some people have been incarcerated or even killed. Countries such as Greece demonstrate the eventual reality of nations that allow their economy to slide out of control. Aside from the economic consequences upheaval in European countries has the added consequence of undervaluing the Euro. Now that France is experiencing financial upheaval in the form of reduced pensions on the part of the French government French citizens have begun to riot in the streets of Paris. While it might not seem like a big deal overall such behavior is certainly negative when it comes the Euro and Europe at large.
Bearing these things in mind the Euro is certainly looking at some trouble in the weeks ahead. Bearing in mind that the USD is also going to experiencing turbulence due to the DJIA undergoing its losses I think the pair EUR|USD is one to stay away from altogether, instead pair these currencies with something more stable such as the CAD and then watch the fireworks. Any instability with regard to currency is a good thing for a smart trader, know which side is stronger and bet accordingly. While it might sound simple just remember to never fall in love with a trade, especially not one made in such a volatile climate. Rest assured that with all the instability already flying around in the market we have not even come close to seeing the last of what is to come.
A lot of people are wondering what will happen if there is a collapse with regard to a European country and what the effect would be on the Euro. Well, despite what the media would have us believe it is not going to spell out doom for the entire world. Indeed the Forex Currency Exchange is a resilient entity and will continue on past the restoration of old economies and the implementation of new ones. There has been a great deal of talk about the “New World Order” and this and that, do not believe the bulk of it for one moment. There is a reason countries go to war with one another and that reason is differences. Sure, it would be nice if everyone could just set aside his or her differences but the world just is not there yet. Great thing for traders, sad thing for the world at large and on that note, happy trading!
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
