The euro replaced the European Currency Unit on the world financial market in January
of 1999; however, the euro banknotes and coins did not enter circulation until three years
later. It is divided in a similar fashion to dollars with each euro divided into one hundred
cents. To distinguish these cents, the moniker euro-cents is occasionally applied. The
euro is currently the sole currency of the following member states of the European Union
(EU) and these are collectively referred to as the “eurozone”:
• Austria
• Belgium
• Cyprus
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Luxemburg
• Malta
• The Netherlands
• Portugal
• Slovakia
• Slovenia
• Spain
Other nations have pledged to adopt the euro at some point. To participate in the
currency, member states had to meet certain criteria. These criteria included strict debt
ratio and inflation parameters, as well as having to have an interest rate close to that of
the EU average.
Euro administration and management fall to the European Central Bank (ECB), which is
based out of Frankfurt. Like many central banks, the ECB sets monetary policy. The euro
is the second most common reserve currency; meaning it is held as part of foreign
exchange reserves by many governments and institutions. It is also considered a hard
currency, one which is perceived as a reliable store of value and is globally traded.
Several countries outside the Eurozone have pegged their currency directly to the euro.
As with many other central banks, the ECB sets interest rates, attempts to maintain price
stability, and promote smooth operation for member banks. Key information is frequently
updated on the ECB’s official website.
The EU is often represented as a single entity in terms of its economy. Many official
statistics for this area come from Eurostat, including agricultural, financial, energy, and
labor themes. Many of these releases are offered free of charge on their official website.
Among the key economic notes for the EU, it may be important to bear in mind the
following:
- The EU has large coal, oil, and natural gas reserves. Of primary interest may be
the North Sea Oilfields.
- The EU is the largest exporter in the world.
- It is also the second largest importer.
- Manufacturing makes up roughly 28.4 percent of the GDP and the services sector
accounts for 69.4 percent. Agriculture comes in at 2.3 percent.
Tourism is an important part of the EU’s economy.
Disclaimer: There is risk of loss in all commodities trading. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some option strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.