There have been many events that shaped the forex market as it is today.
While it is okay for promising traders to commit most of their time on the technical side of things like opening a demo trading account and getting forex management software; learning about these major events can also add essential knowledge about the trade in general.
1. The Bretton Woods Agreement
This event took place in 1944 and it had a major impact on currencies around the world. It was here that the dollar was established as the benchmark for international trade.
2. The Smithsonian Agreement
In 1971, this agreement made changes to the Bretton Woods agreement. The participant parties decided that there was no need to depend so much on the dollar. The changes affected both the dollar and other currencies.
3. The Plaza Meeting
In 1985, the top economies of the world met to discuss the astronomical value of the dollar. The events that came as a result of the meeting affected currencies around the world.
4. The Oil Crisis
The oil crisis hit the major economies in the 1970’s after an embargo by oil-producing nations. This affected almost all major currencies.
5. The End of Apartheid
With the end of apartheid in South Africa, the Rand came tumbling down after a series of sanctions were placed on the country.
6. The Maastricht Treaty
1992 marked the establishment of the EU and the creation of the euro. The events that unfolded after this treaty affected trade and currencies of all the major economies of the world.
7. The War in the Gulf
When the Gulf crisis happened in 1991, the economy of the US was affected. The US invested a lot in the war and that had ramifications for both the United States and Iraq.
8. The Asian Crisis
The 1997 financial crisis in Asia had a great impact on all the major currencies. There was great fear that economic frustration in Asia would not only affect the immediate economies but also the rest of the world.
9. The Iraq War
2003 saw the start of the war in Iraq. This war affected the US, Iraq and several economies in Europe. The shift of Iraq from trading in dollars was the cause of the tensions.
10. The Launch of Bitcoin
Bitcoin came into existence as the first major cryptocurrency in 2009. The effects of this currency on traditional currencies is still being felt today.
11. The Earthquake in Japan
Japan had a severe earthquake in 2011. Being a major economic power, the ramifications of the earthquake were felt not just in Japan but across the major currencies around the world.
12. The EU crisis
The EU crisis of the 2010’s affected multiple countries in varying degrees. The result of the crisis was a huge pressure in currencies across Europe.
13. The Crisis in Greece
The debt crisis in Greece marked the full extent of the EU crisis. The EU had to bear the brunt of the Greek crisis and this had major impacts on European currencies.
14. The Russian Crisis
The Russian financial crisis is one of the recent events that have affected currencies in recent years. The collapse of the ruble was the cause of this crisis.
The vote by the United Kingdom to leave the EU affected the Euro within the first few days of the vote. The effects of the decision as still being felt.