Global Currencies
- Part II
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Global Currencies
|Part 1|Part 2|Global Currencies - How is the health of global currencies? Are emerging markets currencies rising during the dollar crisis? What would this mean for me and my financial stability?
3 – Global Financial Foundation? -10) Considering the USD is the reserve currency for the world and what this status entails, it seems the global financial market and global currencies are resting on the USD. Further, as the US dollar-foundation flees, global markets, most of which are holding a hefty percentage of their assets as US dollars, fall. 11) The top four global currencies are – (1) USD or US dollar, (2) EUR or European Union euro, (3) GBP or Great British pound, and (4) JPY or Japanese yen – the nations of the global financial organization, the Trilateral Commission. (Source: Muhammad Salman) - Top Four Currencies in the Global Market
– USD, EUR, GBP, JPY -
(Source: Donarreiskoffer, Hankwang, Gordo) – Exchange Rate of Euro to USD, JPY, GBP – 1999-2012 -
12) All four nations and currencies – US dollar, EU euro, GB pound, and JP yen - have been experiencing turbulence that reflects the GFC. From our chart we see that of the dollar, pound, and yen the yen has been fairing the best when measured against euro (the higher the line the weaker the currency relative to the euro). 13) What we can see further is that the euro, although typically fairing better than other top global currencies and most other currencies in the global market – statistically (fundamentals) and by perception (technicals), the euro has been facing crisis and some of those who foresee a collapse of the US dollar envision a collapse of the euro first. 14) Let's take a look into a chart illustrating the euro's strength relative to Swedish krona, a comparatively weak currency, yet still a leading global currency – in the top ten of the most traded currencies on the foreign exchange market. (Source: Gorgo) – EUR/SEK – 1999-2011 -
15) What do we see? We see that the euro has been declining against the krona. The dollar, as reserve currency of the world, has a hefty influence on global currencies, particularly those currencies that reside near the top, closest to the dollar, because they share the greatest influence and are often used in concert. 16) Let's take a look into a chart illustrating the dollar's strength relative to the Swedish krona. (Source: Monaneko) – USD/SEK – 1990-2011 -
17)What do we see? We see that the dollar, as well as the euro, has been declining against the krona. The charts are not mirror images, although we can see similarities, particularly the peak in the early 2000s, the peak around 2010, and the subsequent fall. 18)Again, the USD and EUR are the top currencies in the global market, and are related in a number of ways, such as the level that their nations are industrialized, the number of global financial leaders based in their nations, their dominance in the global foreign currency reserves, and their status as representatives of the financially rich players in the global market, rather than the commodity-rich players, for example. 19)As previously mentioned, some propose that both the dollar and the euro are collapsing and although this proposition may not necessarily be accurate, it does seem accurate that the dollar and the euro are related and their movements in the global financial market can greatly influence each other.
4 – Moving Forward -20) So now we ask, how stable is the US dollar as the global reserve currency? 21) What currencies are safe? What are the health conditions of other global currencies. I Click here to look into this GFC Chart? On behalf of The Global FC Zone, Crisis to Profit. Roth
Sources - 1) http://www.investopedia.com/ 2) http://www.wikipedia.org/ 3) Barrons, Roth E. Born to Die: Rising from the Explosion of the Global Financial Time Bomb. 4) http://www.mcxindia.com/
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