EUR/USD most popular currency in the world!
A little history…
The euro is a new currency that was born in 1999. It was created on the basis of the "European monetary unit", which replaced (abolished) the entire national currency of the countries of the European Union. Therefore, the peculiarity of the euro is that it is sensitive not only to the macroeconomics of the entire EU, but also to the individual economies of France and Germany.
It is the most popular currency pair in the world, representing the two largest economies in the world. The euro was created to facilitate international trade between European trading partners. The pair has experienced significant fluctuations since its founding in 1999, caused by many global events, such as the technology boom that led to the real estate price bubble and the European debt crisis.
The European Central Bank (ECB) plays the role of the issuer and regulator of the pan-European currency. The main support for its creation in 1998 is the banking system, which is based in Frankfurt am Main, and its fund was created on the basis of the participation of all representatives of EU countries. In addition to its issuing, supervisory and monitoring activities, the ECB charter is responsible for maintaining the financial stability of the eurozone.
General technical specifications
More than a third of the total volume of transactions in the foreign exchange market fall on a pair of euros to the dollar.
This is due to the economic scale of the countries.
The base currency is the euro, the dollar is the quoted currency. In other words, the euro-dollar exchange rate shows how many dollars you will have to pay for one euro.
If there is positive news in the US and you predict a rise in the dollar, then you should sell.
If you predict the growth of European currencies against the dollar, then you should buy quotes.
What factors do the euro dollar exchange rate depend on?
The main factors contributing to the change in the euro-dollar price revolve around the monetary policy of the United States.
There are several levers that can help the Fed regulate and change cash flows in various ways:
Open Market Interventions;
Increase or decrease of the discount rate;
Managing the level of reserve requirements.
The Federal Reserve Board may immediately change the terms of the reserve and the discount rate. By changing one of the three factors, the Fed affects the amount of funds and ultimately changes the real ratio of the dollar to other currencies (including the euro). Thus, the Fed's decision is a long-term priority factor for the euro currency pair.
The main factor affecting the euro/dollar exchange rate is the interest rate of the Federal Reserve System. This indicator represents the daily payment of interest on loans by credit institutions (banks). When it is necessary to tighten or weaken the national currency, US financial regulators will change interest rates. Traditionally, these measures have had a significant impact on both the foreign exchange and the stock market.
Euro to Dollar exchange rate
The European Central Bank regulates the monetary policy of the EU countries. The main decision on the European exchange rate is made by the Governing Council, consisting of representatives of national banks of the EU countries.
The main objective of the ECB's work is financial stability and full response to the consequences of the global financial crisis of 2008.
Serious economic problems of all EU countries can have a negative impact on the euro exchange rate. This is evident from the dynamics of euro prices during the economic crises in Greece and Spain. Macroeconomic emissions are also a very important factor influencing the strengthening or weakening of the euro.
The most important news is from Germany. This is due to the fact that Germany is the largest economy in the European Union. The most important information is the state of GDP, the theoretical and real inflation index, the growth or decline rates of industrial production, as well as unemployment figures. It is important to take into account the deficit and the effectiveness of current measures to combat the economic downturn of the economy.
Techniques for making a profit
There is a strong inverse correlation between the values of EUR/USD and USD/CHF, which shows an approximate relationship between the euro and the franc. This is due to the fact that Switzerland's economic situation largely depends on the economic and political development of the EU. In most cases, after the euro falls against the dollar, the euro/franc currency pair immediately falls. Given the correlation between the British pound and the euro, the pound/dollar pair has a significant correlation.
Euro Dollar chart
To make money in euro dollars, traders need some skills. Fast trading in 15 minutes or even 5 minutes can allow you to make a significant profit.
The frequent volatility of this quote allows you to implement the most daring and risky trading strategies. A moving average or a combined indicator (for example, MACD) will be able to give a fairly accurate entry point. Exit from the position can traditionally be based on a breakout of the price channel. When using the chart for 1 day or more, the deviation and reversal of the position can also be based on the intersection of the moving average.
Conclusion
EUR/USD has a relatively small history, but in this short time the pair has become popular with many.
High volatility creates many opportunities for earnings, but do not forget about the risks.
The pair is dangerous for untrained traders.
Good luck!
The euro is a new currency that was born in 1999. It was created on the basis of the "European monetary unit", which replaced (abolished) the entire national currency of the countries of the European Union. Therefore, the peculiarity of the euro is that it is sensitive not only to the macroeconomics of the entire EU, but also to the individual economies of France and Germany.
It is the most popular currency pair in the world, representing the two largest economies in the world. The euro was created to facilitate international trade between European trading partners. The pair has experienced significant fluctuations since its founding in 1999, caused by many global events, such as the technology boom that led to the real estate price bubble and the European debt crisis.
The European Central Bank (ECB) plays the role of the issuer and regulator of the pan-European currency. The main support for its creation in 1998 is the banking system, which is based in Frankfurt am Main, and its fund was created on the basis of the participation of all representatives of EU countries. In addition to its issuing, supervisory and monitoring activities, the ECB charter is responsible for maintaining the financial stability of the eurozone.
General technical specifications
More than a third of the total volume of transactions in the foreign exchange market fall on a pair of euros to the dollar.
This is due to the economic scale of the countries.
The base currency is the euro, the dollar is the quoted currency. In other words, the euro-dollar exchange rate shows how many dollars you will have to pay for one euro.
If there is positive news in the US and you predict a rise in the dollar, then you should sell.
If you predict the growth of European currencies against the dollar, then you should buy quotes.
What factors do the euro dollar exchange rate depend on?
The main factors contributing to the change in the euro-dollar price revolve around the monetary policy of the United States.
There are several levers that can help the Fed regulate and change cash flows in various ways:
Open Market Interventions;
Increase or decrease of the discount rate;
Managing the level of reserve requirements.
The Federal Reserve Board may immediately change the terms of the reserve and the discount rate. By changing one of the three factors, the Fed affects the amount of funds and ultimately changes the real ratio of the dollar to other currencies (including the euro). Thus, the Fed's decision is a long-term priority factor for the euro currency pair.
The main factor affecting the euro/dollar exchange rate is the interest rate of the Federal Reserve System. This indicator represents the daily payment of interest on loans by credit institutions (banks). When it is necessary to tighten or weaken the national currency, US financial regulators will change interest rates. Traditionally, these measures have had a significant impact on both the foreign exchange and the stock market.
Euro to Dollar exchange rate
The European Central Bank regulates the monetary policy of the EU countries. The main decision on the European exchange rate is made by the Governing Council, consisting of representatives of national banks of the EU countries.
The main objective of the ECB's work is financial stability and full response to the consequences of the global financial crisis of 2008.
Serious economic problems of all EU countries can have a negative impact on the euro exchange rate. This is evident from the dynamics of euro prices during the economic crises in Greece and Spain. Macroeconomic emissions are also a very important factor influencing the strengthening or weakening of the euro.
The most important news is from Germany. This is due to the fact that Germany is the largest economy in the European Union. The most important information is the state of GDP, the theoretical and real inflation index, the growth or decline rates of industrial production, as well as unemployment figures. It is important to take into account the deficit and the effectiveness of current measures to combat the economic downturn of the economy.
Techniques for making a profit
There is a strong inverse correlation between the values of EUR/USD and USD/CHF, which shows an approximate relationship between the euro and the franc. This is due to the fact that Switzerland's economic situation largely depends on the economic and political development of the EU. In most cases, after the euro falls against the dollar, the euro/franc currency pair immediately falls. Given the correlation between the British pound and the euro, the pound/dollar pair has a significant correlation.
Euro Dollar chart
To make money in euro dollars, traders need some skills. Fast trading in 15 minutes or even 5 minutes can allow you to make a significant profit.
The frequent volatility of this quote allows you to implement the most daring and risky trading strategies. A moving average or a combined indicator (for example, MACD) will be able to give a fairly accurate entry point. Exit from the position can traditionally be based on a breakout of the price channel. When using the chart for 1 day or more, the deviation and reversal of the position can also be based on the intersection of the moving average.
Conclusion
EUR/USD has a relatively small history, but in this short time the pair has become popular with many.
High volatility creates many opportunities for earnings, but do not forget about the risks.
The pair is dangerous for untrained traders.
Good luck!
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