Forex Trading: Euro's Surge

More bad news for those of us here in the US. We all know that the value of the dollar has been weakening against world currencies for the past few months. But this week, the U.S. economy has officially lost the title of "world's biggest" to the euro zone as the value of the Euro surged to record highs.

Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.

The size of the euro zone's annual output has exceeded that of the US.

Taking official estimates of 2007 GDP -- $13,843,800 billion for the United States and 8,847,889.1 billion euros for the euro zone -- the economy of the latter passed the United States once converted into dollars, shortly after the euro topped $1.56. The dollar sank to $1.5688 per euro late in European trading hours on Friday, at which rate the euro zone's 2007 GDP equates to $13,880,568.4 billion.