As the most traded and two largest currencies in the world, EUR/USD Currency Pair are being the representation of the highest proportion of trade that is carried out in international finance.
The pair of EUR/USD is very popular and its trading occurs constantly. In the world, it is the most liquid currency pair. Companies that operate in both the United States and Europe, have an office in both locations.
Because of this, it is one of the reasons why every single day a large number of exchanges are conducted using the two currencies. Other reasons for investing and trading include a large amount of available financial and economic data on the exchange rate of EUR/USD Currency Pair.
Knowing the EUR/USD History
Despite this currency pair has only existed since the late 20th century, in modern forex trading, this currency pair has proven itself to be powerful in modern forex trading. At the beginning of the 20th century, the Euro was first envisioned.
However, until the end of this century, this did not fully materialize. It appeared first as pure digital currency, and later as physical coins and banknotes. This common currency for much of Europe is quickly gaining traction and establishing a market leader.
Euro trading is rapidly developing into an exciting and new financial opportunity. Of course, the dollar as the part of this EUR/USD Currency Pair exchange rate, much older, with roots dating back to 1792 and created by the United States Constitution, started its history first.
Since then, the dollar has grown rapidly and, paired with the Euro, among traders and investors, they have become a global standard. However, the history of the euro exchange rate has not always been so good. Some mistakes have occurred over a short period time.
Between 2008 and 2014, the euro experienced a historic record drop. This followed the fall of the 2008 financial crisis. While there was a raising in the strength of the US subprime mortgage, it led to a recession in Europe.
The Role of Euro
As a major role in the movement of the EUR/USD exchange rate is played by interest rates, it is not surprising that the ECB (European Central Bank) is one of the main institutions that will be considered when traders and investors making decisions with the best forex broker.
The economic outlook and interest rates report are released monthly by the ECB, which are used by traders and investors as an indicator of the future directions of policy and its impact on the EUR/USD Currency Pair exchange rate.
Consolidated employment numbers which is one of broader economic data, can also influence the exchange rate of EUR/USD. For traders, it can be an important source of information so that they can get more knowledge to prepare the best strategy to trade.
The Role of USD
Like its counterpart, the central bank of the US dollar influencing the US dollar. Eight times a year, the US Federal Reserve releases rate statement and interest rate, which can affect the currency and can provide insight into the US economy condition.
The Nonfarm payroll numbers are released by The Bureau of Labor Statistics every month, usually on the first Friday, in the US. The volatility in the EUR/USD pair usually can be volatile because of this US unemployment data. Investors and traders are watches closely to it.
As the true forex trader, after understanding the history of EUR and USD and their role in the market, you can trade with an advanced broker like didimax forex broker to reach your success in trading currency pair such as EUR/USD Currency Pair.
