EUR/USD Forecast & Technical Analysis Eurozone – German Flash Manufacturing PMI Later in the week, on Friday, at GMT 7:30 a.m., the Markit will release the German Flash Manufacturing PMI data. It measures the level of a diffusion index based on surveying around 500 purchasing managers in the country. Pepperstone traders consider the Flash Manufacturing PMI figure […]read more
Forecast & Technical Analysis
What is the EURUSD?
EUR/USD or simply Euro Dollar is one of the most significant currency pairs in the Forex market. The pair determines the exchange rate of the Euro against the US dollars. For instance, a quotation 1.1780 describes the value of the Euro in US Dollar, meaning 1 Euro equals 1.1780. Euro, the single block currency, came into existence in 1999 and since then 19 of the 27 EU member states have adopted it. It is so remarkable for a currency pair that did not exist just two decades ago now accounts for nearly 25 percent of the total Forex market volume.
EUR/USD is one of the most favorite currency pairs of both retail traders and institutional investors. The Forex brokers provide the lowest trading spread starting from just 0.2 pips. Some ECN brokers also offer spread starting from zero pips. The pair’s pip value on a standard lot (100,000) is $10. The leverage ratio varies from broker to broker but with some brokers it goes as high as 1:2000.
Euro Dollar Fundamentals
The EUR/USD represents the two well-documented giant economies of the world and for this reason, its fundamentals are often more predictable compared to the other pairs. The biggest factors that affect the value of the pair are the monetary policy and the economic condition of both countries. For instance, a higher interest rate by the US Federal Reserve strengthens the US dollar and drags the EUR/USD lower. Likewise, higher interest rates in the EU or the better economic numbers strengthen the Euro and takes the pair higher.
In the 2008 recession, the EUR/USD surged to nearly 1.1600. The prime reason behind the surge was the US Federal Reserve that stimulated the local economy with trillions of dollars and kept the interest rates nearly to zero. Similarly, in the 2016 Brexit referendum when the UK decided to leave the European Union, the pair plummeted and dropped to almost 1.0350.
EUR/USD is highly regarded for its liquidity and volatility and traders find it ideal for day trading, scalping and even for swing trading.
BrokerTrending.com provides you with the Latest Euro to Dollar (USD) forecasts. Find here a technical analysis on a weekly basis on the currency pair EUR/USD.
USD index rose on Monday against most of world currencies, to continue its raising for second consecutive day, as part of recovery from the lowest level in 27 months, supporting those operations hopes that officials in United States reached an agreement on new financial stimulus packages to support largest economy in the world In the […]read more
USD index rose on Thursday against most of global currencies, to hold above the 27-month low recorded earlier in the Asian market, as part of temporary recovery operations, this comes ahead of issuance of weekly subsidy requests in United States. USD index rose 0.2% to the level of 92.96 points, the opening level of trading […]read more
EURUSD Forecast & Technical Analysis – 31st July 2020 USD fell on Friday against most major currencies, to continue decline for 3rd day, recording lowest price in 26 months, after comments by President of United States, raised concerns about the presidential elections scheduled for next November, and the largest currency is heading in the world […]read more
EURUSD Forecast USD rose on the European market on Tuesday against a basket of global currencies, on its way towards achieving the first gain during last eight days, EURUSD consolidates above the lowest level in two years recorded earlier in yesterday’s trading, this comes ahead of the release of important data on levels of confidence […]read more