The European Economic and Monetary Union (EMU) Euro Currency Unit

On January 1, 1999, eleven of the countries in the European Economic and Monetary Union (EMU) decided to give up their own currencies and adopt the Euro (EUR) currency: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The Vatican City also participated in that changeover. Greece followed suit on January 1, 2001, Slovenia on January 1 2007, Malta and Cyprus on January 1, 2008, and Slovakia on January 1, 2009.

It is worth noting that any place that previously used one or more of the currencies listed below has now also adopted the Euro. This applies to the Principality of Andorra, the Principality of Monaco, and the Republic of San Marino. This of course applies automatically to any territories, departments, possessions, or collectivities of Euro-zone countries, such as the Azores, Balearic Islands, the Canary Islands, Europa Island, French Guiana, Guadeloupe, Juan de Nova, the Madeira Islands, Martinique, Mayotte, Reunion, Saint-Martin, Saint Pierre and Miquelon, to name just a few.

Euro bank notes and coins began circulating in the above countries on January 1, 2002. At that time, all transactions in those countries were valued in Euro, and the "old" notes and coins of these countries were gradually withdrawn from circulation. The precise dates that each "old" currency ceased being legal tender are noted in the table below.

For convenience, and because their values are now irrevocably set against the Euro as listed above, the XE.com Universal Currency Converter will continue to support these units even after their withdrawal from circulation. In addition, most outgoing Euro currencies will still be physically convertible at special locations for a period of several years. For details, refer to the official Euro site as listed in the Relevant Links section below.

A note about spelling and capitalization: the official spelling of the EUR currency unit in the English language is "euro", with a lower case "e". However, the overwhelmingly prevailing industry practise to spell it "Euro", with a capital "E". Since other currency names are capitalized in general use, doing so helps differentiate the noun "Euro", meaning EUR currency, from the more general adjective "euro", meaning anything even remotely having to do with Europe. This is particularly pervasive in marketing and advertising, where it is common to read statements like, "Try new Goop™ hair gel with genuine euro style and hold!" Nevertheless, this linguistic nuance is very subtle, even for native English speakers. it is also important to note that many languages have different official spellings of the name or EUR unit, which also may or may not coincide with general use.

For more information on the EUR, we encourage you to visit the Websites listed below, particularly the official one. These sites include recent news on the Euro as well as issues like implementation, spelling, legislation, and many more.

Daily Forex Analysis – Pounds To Dollars 1st September 2009

Forex Technical Analysis

It is hard to see how the pounds to dollars pair is going to recover from the technically bearish position in the short term, with all three moving averages now pressing heavily on Sterling , and coupled with the strong support which has now effectively been breached in the last few days, any recovery higher will require a sustained effort and a large dose of US dollar weakness. Yesterday’s candle ended the forex trading session as a small doji, with the low of the day finding some support in the 1.62 price region, in much the same way as towards the end of last week, suggesting that the forex market is trying to rebase at this level. However as outlined above any attempt to move higher will need to breach all three moving averages as well as break and hold above the deep consolidation area, both of which seem unlikely at present. More likely is a re-test of the 1.60 price handle in the short to medium term, which may provide a stronger platform for any reversal higher once again. However, should this level be breached then a deeper move to 1.55 or below would be a possibility in the medium term.

Fundamental Forex Analysis

As we start a new month of fundamental news for Cable, the key data this morning will be the Manufacturing PMI number which is forecast to remain above the ‘50′ level, at 51.5 against a previous of 50.8, suggesting once again that we are seeing an industry in expansion rather than one in contraction. As a leading indicator it is one that the forex markets will watch closely, and indeed this picture is likely to replicated later in the US where we have the equivalent data in the afternoon for the US economy, which also shows a similar picture. The other main item of fundamental news in the UK are the Mortgage Approvals, which are expected to show a very small increase once again. All the other items of news are covered in more detail on the euro vs dollar site or on the economic calendar by following the appropriate link.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.

Dollar Makes a Critical Bearish Break but Risk Appetite Provides Little Follow Through

• Sentiment-based Momentum Giving Way to Judicious Fundamentals
• Monetary Policy Efforts Reveals a Building Divergence in Growth and Inflation Forecasts
The sharp rally that opened this week seemed to confirm that the next wave of a five-month bull trend was underway. However, this optimistic outlook was immediately deflated when momentum failed support the transition. What is the source of this hesitation? Fundamentals. Risk appetite and broad economic growth are two separate conditions. Generally, the former follows the latter; but when speculation is involved, inconsistencies often arise. Tracking sentiment since the beginning of the year, we have seen a clear evolution from a market that was attempting to establish stability after a financial crisis to one that was expanding as idle capital returned and yield forecasts rose. At this point, the reversal is unmistakable; but then again, this does not mean it is permanent. The more traditional asset classes have cleared their highs for the year; but the drive behind this rally has certainly eased. Equities, represented by the Dow Jones Industrial Average, have stalled over the past three days. In a similar fashion, the speculative-receptive commodities market has pulled back from its own highs without a clear level of resistance overhead. Alone, these asset classes would suggest risk appetite is health, just taking a breather. However, in the currency market, the conflict is more obvious. Looking beyond the 10-month high for the carry index itself, we have seen the US-dollar based majors stall immediately after mark-wide break against the greenback. And, ensuring that this is not just the dollar break from sentiment, the yen crosses have themselves yielded ceded to resistance.

Looking at the market’s as a whole, we are left to believe that a recovery is well under way. However, the developing trend behind investments is as assured as the revival of growth – that is to say, it is still highly uncertain. It is important to separate the influences of sentiment from the true foundation of economic expansion. Clearly, data over the past half year has supported the notion that the worst of the global recession is likely past and perhaps that positive growth is on the horizon. Coming from a record-breaking recession and ongoing financial crisis, this turn would naturally bolster confidence. A sense of stability is certainly enough to draw sidelined capital back into market-based assets (and thereby inflate their values); but to promote a true bull wave, turnover has to be catalyzed by the promise of rising returns and tangible growth has to produce wealth. The global economy has not yet graduated to this phase. Growth readings to this point have merely reported a moderation in the pace of the ongoing recession. Officials from many of the world’s largest economies see expansion at or after the turn of the year. Yet, even if this milestone is reached, growth from that point is forecasted to stagnate. To this point, government spending and stimulus has been the primary engine for improvement. Policy makers may be able to keep this scaffolding in place long enough for lending to fully thaw and business investment to revive; but the consumer is the key in this equation. Now the question becomes whether those countries with positive growth (China, Australia) will fold under the pressure.
isk Appetite Provides Little Follow Through