10 Major Economic Events From History
And How They Influenced the Currency Market…
As long as people have been using money, economic events have had a major impact on humanity. History has been shaped by economic disasters, for better or worse. Wars have been started on their account. Conversely, historic events have never failed to impact the regional or global economy.
Thus, World War 1 left Germany with a bleak economic future, which was a significant factor in the start of World War 2. The Great Depression shaped the 1930s, contributing to a refugee crisis within the borders of the US. The economic value of oil has led to war and upheaval in the Middle East and elsewhere.
The currency market, of course, was not left untouched. Every economic and political event, and every crisis, has an impact on the value of a country’s currency. Increased demand in the face of an economic boom will boost a currency’s value. On the other hand, investors pulling out of a country will devalue it.
The following are 11 major historic events that in turn had a huge impact on the modern currency market.
As with any history, the purpose of understanding it is to stop it from repeating itself. When it comes to the economy, we need to be wary of the fallout of anticipated events. Oil, for example, is still a major driving factor of economies in the Middle East and throughout the world. One thing that can be guaranteed is that the price of oil will not stay stable. In 2016, commodity prices have been dropping, leading to economic uncertainty.
There is also much to learn from the various recessions that have occurred through history. While the Great Depression may seem far away, crises in the ‘90s, ‘00s and ‘10s should serve as warnings of what may come. Some speculate a global recession is on the horizon. We will have to wait and see, and in the meantime prepare, as anything might happen.
Will 2017 be as volatile as 2016’s Brexit? It is very possible. To view planned economic announcements please view our 2017 economic calendar.