When it comes to the foreign exchange market (known as the fork), change is inevitable. With this huge liquid market receiving trillions of transactions per day, exchange rates can fluctuate at any time. To move forward, it is important not only to know the movement of currency values but also to know what causes them.
Forks, perhaps more than any other trading market, are primarily affected by a variety of external, global factors. As the world’s largest financial market, forex operates on a fixed exchange rate. This highly volatile market can make significant changes in months, weeks or even hours, increasing or decreasing the exchange rate. Browse basic forex trading strategies from Plus500 convenient blog and website for more expert information.
When trading in the forex market, for example to open a CFD, you need to know how certain factors affect these changes. A prime example is the analysis of the performance of the euro, one of the most traded currencies.
Read on to find out how the euro has changed in the last five months, and how measuring these activities will benefit your future business decisions.
October / November 2021
The most widely traded single currency is the EUR / USD, which is one of the two largest economies in the world. This is how we better measure the value of the euro during this time.
The euro came in at $ 1.16 in early October, up from the beginning of November. However, the euro, which ended at $ 1.12 in early December, has fallen sharply in a month.
The main reason for this sudden failure was the impact of the CVD-19 epidemic. In November, many European countries returned to strict locking restrictions. At the same time, Omicron diversity was growing rapidly throughout Europe.
With a significant reduction in available and open trades, the economy naturally took great success. The euro zone (European economy) has the highest inflation rate at 4.9 percent. All of this explains the sudden fall in the value of the euro.
December / January 2021
In December, the value was around $ 1.25, and Korona virus restrictions are still declining in November. However, in January, the January 26 price dropped to $ 1.1.WeBefore you make a quick increase on January 30thWeThey leave $ 1.14 on February 4.We.
This was probably the January 26th speech by Chairman Paul on Federal Reserve inflation.We. Chairman Paul predicted a sharp rise in interest rates, prompting many traders to trade with the USD, thereby lowering prices. This explains why the dollar has fallen in terms of many currencies, including the euro.
Currently (February 22)rd), The euro is set at $ 1.13. With rising tensions in Ukraine, the value of the euro seems to be hanging in the balance. The value has been declining sharply since the beginning of this month, mainly due to Russia’s growth in Ukraine.
Traders around the world are expecting this event and are planning to invest, which could significantly devalue the euro.
The euro has seen significant changes in prices from October to February, mainly due to the impact of the Corona virus and interest rates in the US. As we move into March, the invasion of Ukraine will definitely keep our eyes peeled for you, which will help you to be more accurate in forecasting the euro – this could include another euro devaluation.