European economic and monetary union is often cited as the single most important event for the current generation of foreign exchange dealers. In fact a number of major developments are occurring simultaneously - some unconnected with Emu - each of which will have a profound impact on the forex market.
Independently of progress towards Emu, the rapid application of technology is already changing the nature of the foreign exchange market and it may be assumed that this trend will accelerate over the next few years. One example of this has been the rise of electronic broking and its impact on the traditional voice-brokerage firms. As clients increasingly embrace electronic communication and deal execution, the market-making banks will face many of the same issues. When you add the prospect of fewer currencies - post-Emu - to this development, the adjustments that will be necessary in the forex market become even more apparent.
Emu is already having a significant impact on the market. Opinions on whether or not Emu will be successful, and whether or not it will proceed on time, have ceased to be the main determinant as each market participant plans for the years ahead.