EURO (EUR) Overview
Europeon Currency is called as “EURO” It is the official currency of 20 Europeon countries who are part of Euro. It is very stable and it is one of the most traded currency in the world with heavy volumes.
US Dollar (USD) Overview
United States currency is called as “Dollar” It is the official currency of US. It is very stable and it is one of the most traded currency in the world with heavy volumes. US is the largest economy in the world.
Factors that influence EURUSD Currency Pair.
Agri Product prices. US is one of the largest exporter of agri Products. and European Countries are also exporters of agri products as well as dairy products; Hence agri products prices can have huge impact on EURINR Currency Pair.
2.Economic Indicators: Monetary Policies of US Federal Banks and European Central Bank, GDP growth, employment rates as well as inflation data in US and in European countries are major factors which influence EURUSD pair
3.Interest rates: Change in Global Interest rates and interest rate hike by US Federal Bank and Europe Central Banks has impact on EURUSD Pair.
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A1: The EURUSD currency pair represents the exchange rate between the European countries and US Currency. Euro (EUR) and the US Dollar (USD) also called as US Dollar. It indicates how many US Dollars are needed to purchase one EURO.
The exchange rate of EUR USD is influenced by various factors such as interest rate difference in Europeon Countries who are member on Euro & USA, economic data from Euro and USA, inflation prices in European countries and USA, commodity price fluctuations and global market sentiment. Geopolitical events such as war or corona disease, Also Local Prime Minister or Presdential Elections have impact on it.
EURUSD IS THE #1 traded currency pair in the world and has high volume and liquidity in all countries.
Like every country’s economy European countries who are members of Euro and American economy is also dependent on commodity exports, agriculture product. Global commodity price fluctuations has effect on impact the EURo therefore it effects affecting the EURUSD exchange rate.
Best time to trade is European Markets Opens and When the US Market opens. This is when liquidity and trading volume are much higher. Which leads to potentially more significant price movements. thus traders can make good profits.
The main economic indicators to watch when we are trading EURUSD are GDP growth, Employment data, Inflation rates, Agriculture Products, and interest rates in European countries and USA.
Monetary policy decision taken by US Reserve Bank and European Banks, including interest rate decisions and currency interventions of Federal bank can impact USDINR. Forex Reserve plays a important part in it,
