Is the Euro set to become the most influential currency in the world?
As rumours circulate Wall Street that the Federal Reserve is set to slash interest rates by 0.5% the dollar has taken a serious hit against the Euro. In a world where currency fluctuations have never been more severe it is the Euro which appears to come out best against both sterling and the dollar. As rumours also circulate that the UK is set to join up to the Euro in the short term some people are suggesting that the currency could become the most influential in the world.
Not only are we set to see more and more EU states join up to Euro but the vast number of countries waiting to joined the EU look highly likely to be forced to take it as their currency of choice. The more countries which depend upon the European currency the stronger the Euro will become and the more investors would be attracted to it. However, this could all change overnight if European rates are slashed in the short term, something which could see the currency come under pressure.
The ongoing worldwide recession appears to have increased the strength of Europe as a whole against the likes of the US and Far Eastern counterparts.
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