University of PhoenixJanuary 6, 2010Euro currency markets are composed of the markets that the euro is the dominant currency. These markets are primarily composed of the 11 comprising members of the European Union, but extend to foreign exchange and online markets globally. By exploring the history of the euro, global financing, and exchange rate mechanisms, it will be much easier to identify the recent powerful impact of this "new" currency.
History of the EuroThe concept of a common market in Europe has been the goal of the six founding nations of the European Union, Belgium, France, Germany, Italy, Luxembourg and the Netherlands, since the end of the Second World War. The Treaty of Rome in 1957 created the European Economic Community (EEC), and almost 20 years later Denmark, Ireland and the United Kingdom join the European Union (Europa, n.d.).
The following is an excerpt from the Europa website, which clearly summarizes the events leading to the enlargement and stabilization of the EU, and therefore the euro.
In 1981, Greece becomes the 10th member of the EU and Spain and Portugal follow five years later. In 1987 the Single European Act is signed. This is a treaty which provides the basis for a vast six-year programme aimed at sorting out the problems with the free-flow of trade across EU borders and thus creates the 'Single Market'. There is major political upheaval when, on 9 November 1989, the Berlin Wall is pulled down and the border between East and West Germany is opened for the first time in 28 years, this leads to the reunification of Germany when both East and West Germany are united in October 1990.
With the collapse of communism across central and eastern Europe, Europeans become closer neighbours. In 1993 the Single Market is completed with the...