The most popular currencies in forex trading are euros and the dollar. At the same time, the dollar significantly affects the exchange rate of the European currency. As soon as the demand for USD changes in one direction or another, there are also corresponding changes in the euro market. Many novice traders are trying to build their trading based solely on technical analysis. Without begging for its effectiveness, I still want to note that euro trading will be more successful if trade decisions will be made taking into account fundamental factors. I want to talk about them today. If you know what news should be paid attention in the first place, then you can speed up access to a profitable level of trading in European currency.
What affects the euro
Some eurozone statistics have a significant impact on the single currency market. First of all, this is inflation. The dynamics of consumer prices is an important indicator of the state of the economy. If CPI above forecast, then you can wait for the strengthening of the euro and, accordingly, vice versa. At the same time, you should be interested in inflation data not only in the eurozone, but also in its largest economies (Germany, France). Strong volatility in the euro market is usually caused by statistics on the dynamics of gross domestic product. Accelerating economic growth increases demand for the euro. The recession in the economy is a negative factor for the European currency. Trader should always keep track of meetings ECB, as they determine further monetary policy, including on the interest rate. If the participants in the meeting give a positive assessment of the state of the economy, then an increase in the rate can be expected, which will lead to a strengthening of the euro. Currently, the ECB’s key rate is at a record low. According to the results of recent meetings, the bank does not yet plan to raise it. Despite positive trends in the region’s economy, risks remain. To solve the problem related to the pandemic, so far failed. And another indicator that I recommend paying attention to is investor confidence in the German economy. It is calculated and published monthly by ZEW. Earlier this month, the institute said that investor confidence in the largest European economy continues to decline amid the risks associated with the spread of a new coronavirus strain “delta.” The report of another decline in the index led to a fall in the euro. Currency pairs with euros are quite a lot, and trader can trade on any of them. But I would still prefer eurusd, because it has no equal in the degree of volatility. Inga Fedorova 21.08.2021 Record How profitable to trade euro on forex first appeared forex-for-you.ru.