The Euro is in trouble and it is starting to show. With the growing crisis in Europe over debt and recession, the entire world economy has been shaken up in drastic fashion. Because the U.S. has also been experiencing their own economic problems, the true depth of the European currency’s problems has not yet been felt, but the warning signs of a major drop in value are all there. Many European countries are going into a recession, and the possibility of defaulting on their debts is very real. While the Euro has only dropped slightly in value over recent weeks in comparison to the dollar, it is very likely that this drop off in price will begin to increase in pace over the coming weeks.
Does this mean that the U.S. dollar is your best option? Not necessarily. You still need to do your homework and select the best place to store your trading money. The dollar in all likelihood will increase in value, but there are other currencies that have the potential to outperform it. The Canadian dollar is one such place. At one time, the Canadian dollar was worth approximately half of the U.S. dollar, but now they are almost even in price. Canada’s currency has grown in value and may just continue to outpace the dollar’s growth. Be cautious, though; there is no guarantee that the Canadian dollar will hold its value. Still, there is a very real possibility that Canada’s economy will remain healthier than the European economy.