Professional trading means understanding of forex history, constant Trading Self Check (read more Ultimate investment: currency vs. gold, Ultimate investment: immpbile property vs. forex, Ultimate investment: clothes or bank)
August 1998: The Russian Ruble devaluation, default.
The 1997 and 1998 years were remarkable for two happenings that attracted the traders’ attention. The first was the Asian market currency crisis that started with the Russian ruble and caused devaluation of other Asian currencies. The Japanese Yen was fixed on the 147 Yen per 1 USD mark. It means that this currency lost its weigh by two in 3 years.
The second important happening is the Russian ruble devaluation. As everybody knows it was a very controversial happening that dramatically influenced the currency markets.
January 1999: the Euro was issued. The first electronic operation with Euro as a currency uniting 11 European countries.
October 2000: Euro hits its historic minimum to USD when 1 EUR cost 0,8227 USD.
In the early 1999 11 major European currencies, including the German mark, French frank, Italian lira, were united in one European currency named Euro. A year later the turnover of other currencies was terminated and EUR became the major currency for all payments and transactions on the territory. Once Euro was issued it cost 1,16$ per EUR. As soon as in a half year its cost constituted just 82 cent – that was 29% less than 29%. Nowadays however we are witnessing quite another situation.
September 2008 will be remembered as the global crisis with dramatic effect on the global economy. No day passes without mentioning words like crisis, recession, economic slow-down. The global crisis started in summer 2007 in the US and by now it spread all over the globe, in major developed and developing countries and in some third world countries. Most stocks lost their weigh, banks are not eager lending each other money, many currencies lost their positions to the USD. Mortgage loans are almost impossible to get in most countries. The same situation – with the credit cards. The situation was exactly otherwise 2 years ago. Many people are left with nothing, loosing their homes, valuable assets.
However, the situation is not that bad. Whereas we experience some difficulties, we meet more opportunities. As British pound looses its price and is now 25% cheaper than several months before, as raw oil costs 50% less and Euro is loosing its positions, the market dynamics is getting more intensive. It provides traders with much more possibilities.
