Foreign Currency Market

The capitals market suffers daily constant changes, and with them, the quotation of international foreign currencies. The fluctuations seen in the last months, above all during the mortgage crisis of the United States has provoked some instability in the prices of international foreign currencies. During these last days the dollar quotation took a preference place in newspapers and international media, as the amount of this currency has fallen regarding other pairs of other countries. The stregthening of the maggior part of international foreign currencies in front of the dollar make markets be in alert, even if the sensation that there is in the financial world at the moment is that this trend will change and the American currency will be appreciated again. Although some speculations that there are about the future of the dollar, while deciding in which international foreign currencies invest traders have been prudent, that’s why while deciding they have chosen those pairs that are actually object of minor speculation as the EUR/CAD, EUR/GBP or EUR/CHF.

The birth of the Euro is without any doubts a historical success for the European Union. Even if at the beginning it was not completely accepted, after some years the euro was more accepted that critised in most of european countries.
Almost 30 years after the creation of the European Economy Community in june 1988, the european council confirmed that il would take part of Europe with a unique currency: euro.
The euro was officialy launched on January 1st, 1999 fixing the exchange rates of the eleven nations that adopted it firstly. Finally on January 1st 2002 euro starts to circulate during the lapse that was taken to issue the currency.
Six months after that, in July of this same year official currencies are taken out of each country so that euro becomes the asset of the members of this new step.
After some time, euro began to have more success and many countries saw in euro the possibility of improving their economies, and that’s why since its appearance many nations have continued taking part of the euro market that is becoming stronger every minute.

The dollar situation in 2007 was not very favorable. The economy slowdown during this year makes dollar devalue in 2007 regarding to other foreign currencies of the world.
During september the mortgage crisis in United Stated expanded to the principal markets of the world that lower their performance. The lack of liquidity as a consequence of high risk credits that are borrowed in United Stated caused a never thought recession at financial markets.
There are some nations that have chosen to keep the dollar in 2007 not very higher that its local currency value, but there are also other countries where the dollar value in 2007 has been raising. This is because high exchange rate means more profitability for exporters, this happens in countries as Argentina where high dollar has been since 2003 one of the bases of its economy, on the contrary, other Latinamerican countries have chosen to keep dollar not very high regarding its original currency.

What is happening to the exchange dollar/euro?, What do we have to analise whenever we talk about this king of rate exchange between dollar and euro?. Firstly, international situation shows us that the exchange dollar/euro is one of the most commercialised at financial markets as actually they are the currencies that have more strenght.
Another aspect to consider is the fight that we are having in the exchange dollar/euro, and that answers to political/economical factors that during history have been produced between these foreign powers.
Even if today all over the world dollar is used to carry out big commercial and finacial transactions,this answers to the simple reason that with american currency crude can be bought. If this trend changed at any moment, the die is cast.
It must be considered that since euro appeared on January 1st, 2002, world financial balance has been inclining to the euro. Euro zone was composed by eleven countries firstly, and actually there are 25 nations that are part of it, and there are still 3 countries that are waitng for entering in this group.
World principal markets show every day that the exchange rate dollar/euro is the most attractive. Today dollar is still keeping its power as it is the currency that allows you to buy crude, even if there is a trend that shows a replacement by the euro, situation that will show a new way at the world financial market.

As many countries of the world that were under the british control during colonial times, Canada had to suffer for being a colony of the european power and so develop its commerce in pounds during this period. The birth of the canadian dollar was in the end of the 18th century and at the beginning of the 19th century, more exactly on the 1st january 1858 when they ordered to issue the first canadian dollars.
In 1871 the currency unification was approved as this was one of the principal conflicts that Canada used to have. Since that moment, all the regions became tied up to the canadian dollar.
The canadian dollar can be found as a bill or on the contrary, as a coin, and its similarity to american currency is very noticed. Canadian coins are issued by the Real House of Canadian Currency and canadian dollars are issued by the Bank of Canada and produced at Ottawa.
The relation canadian dollar and the american one is almost the same in its exchange rates. One american dollar U$$ 1 is equals to CAD 0,98 canadian dollars.