The current state of euro in global market

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To monitor the current state of the euro in the global market, I had to use sources from the Internet to track current or mainly weekly changes in the state of the world's strongest currencies, such as the US dollar, the UK pound, CHF (Swiss franc), the Japanese yen, and the euro. As it is well known, the euro is the currency of several countries within the 'euro zone' in the European Union, so that political and economic developments within this alliance can affect the status of the euro. Of course, stability within the EU gives stability to the euro in the world market. These days, two events can have a decisive influence.

Firstly, there is a big debate at the UK parliament at the moment about the way BREXIT is implemented, the country's EU entry. This process is not cheap because it is billions of euros, so GB (Great Britany) pound as one of the strongest currencies in the world can affect the situation on the world money market. There are important relationships of this currency with other currencies and even towards the euro. It is logical to expect that the more favorable terms of the GB (or UK, United Kingdom) exit from the Union will be the weak power of the euro and vice versa. Great Britain was a powerful part of the EU both on the inner stage and on the world stage.

At the moment, there is a big battle over the confidence of the Prime Minister, Theresa May, in the British Parliament. The world currency market with great interest is following these developments. Of course, not only is politics a crucial factor. It must be borne in mind that the UK may have been the strongest part of the common economic policy and the position of the European Union in the world economic market. Secondly, these days we are closely following developments in France, which is part of the eurozone, that is, which has the euro as the official currency. Namely, in France there are major protests and riots that are caused by raising taxes from the French government. This has the most impact on the poor and middle class of society, so they have produced strikes in this country.

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Each strike, by itself, implies a suspension of work that leads to distortions on the economic plane. Since French is currently, along with Germany, the strongest link of the EU, it is quite natural that these events reflect on the economic situation within the Union. Nevertheless, the basic parameter within the EU that determines the state of the euro are the budgets that are made in each EU member state at the transition from one year to the next. Stable budgets of EU member states give stability to the overall strength of the euro on the world market. Since the Union acts as a member state on the world stage, any tension between EU members and the center in Brussels can have an impact on the growth of the eurozone as a whole, which can keep the euro under some pressure.

Each member of the EU participates in a common economy in a proportionate way, so that any turmoil in one of the members reflects on a common economic approach to the world market. An even more recent example of the Greek economy is known, which in recent years has posed major problems for the EU, which sought to help the Greek economy get out of the crisis because the weakening of this economy would lead to a weakening of the EU economy. In a press release issued on December 5 this year by the European Commission (europa. eu/rapid/press-release_IP-18-6643_en. pdf), proposals for further strengthening the global role of the euro were presented. Thus, the document says: 'Euro is a young but successful currency. It's time to further develop its global role.

The euro should reflect the political, economic and financial importance of the euro area and foster a balanced international political and economic policy-based order. We want to start this journey today, which will be successful only if the EU, the member states, the market participants and other actors join their efforts. In this release, the EU Commission urges member states to promote the broader role of the euro on the global scene. European companies on the world market often use the US dollar and even in mutual business, which certainly damages the role and strength of the euro in the global market.

It is also said that the euro is today the second most important international currency used by some 340 million European citizens on a daily basis, and around 60 countries around the world are tying its currency to the euro or using it as their currency. There is also a significant part of the international reserves of foreign central banks, which certainly strengthens the role of the euro in the global economic market. So, at the moment, the euro has a very important role in the global market. Occasionally there are oscillations that are conditioned mainly by economic trends within the Union, where primarily the economic potentials of countries that are recognized globally, such as the German, French, Italian, Spanish economy, play the major role...

Another important factor affecting the global market is the state of the US dollar to which the euro is the main opponent, or the currency with which it is most often compared. Sporadic crashes and raising US dollars directly affect the dollar and euro ratio. The European Union is one of the world's biggest contractors, but also one of the largest importers, so it is quite natural for the euro to play one of the biggest roles in the global economic market.

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