Impact of the new Currency Amero on the Forex Market!
First let me introduce you to the Currency Amero. The North American Currency Union is a theorized economic and monetary union of the three principal countries of North America, namely Canada, the United States, and Mexico.
Implementation would probably involve the three countries giving up their current currency units (U.S. dollar,Canadian dollar, and Mexican peso) and adopting a new one, created specifically for this purpose. The hypothetical currency for the union is most often referred to as the Amero. The concept is modeled on the commonEuropean Union currency (the euro), and it is argued to be a natural extension of the North American Free Trade Agreement (NAFTA) and the Security and Prosperity Partnership of North America.
The best way to replace USD is to make it weaker and weaker which of course is happening right now and we can see it on our Forex charts. Probably you Forex Investorz are already thinking; maybe it is a good idea to take long term position against dollar? Well you might seriously consider doing this.
How will this new currency affect the Forex Market? To be honest I’m not sure yet. What I do know is that there is one big problem we Forex Traderz will face because the Amero will have no history it will be difficult to analyze the Currency in the early days.
This means no backtesting, and even no “space” for technical analysis. However these will be problems only for long term traders or swing traders. I guess scalpers will be okay with this because they do not need a lot of data, but i do not know i am not a scalper.
The beginning exchange rate for the Currency Amero is a tough one to determine. Remember ten years ago when the Euro launched nobody had a idea if it would be worth more or less than the US dollar. Eventually it rose above the Dollar but how will the Amero affect the Euro then?
Will the Currency Amero react the same way the Euro reacted back then? Nobody can tell 100% sure but what can be stated is that us Forex Investorz will enjoy speculating and its a fifty-fifty chance you will analyze the course right or wrong. Of course if you got it right you will profit from this new Currency tremendously.
Post Details
Posted on December 19, 2008
at 2:08 pm
Written / posted by: Piere
Filed under: Currency Trading, News