Introduction
The euro dollar, known in financial markets as EURUSD, refers to the exchange value of the euro to the dollar.
Let’s take the example of , if the price of EUR/USD is 1.10, you must have 1.10 USD to buy 1 EUR, or you get 1.10 USD when you sell 1 EUR.
EUR/USD can be used in real economy trading, in currency exchange for travel, but also as a financial instrument for speculating in the foreign exchange market. The EUR/USD is a major currency pair in the currency market.
Most popular trading currency pair
The EUR/USD is one of the major currency pairs traded by many traders around the world. This is because volatility is not as large as gold or GBP-containing currency pairs. If you trade a currency pair with the British Pound, you will understand how awesome it is, along with the craziness of the “Golden Boy”. At the same time, it is also stable so that traders do not need “heart medicine” such as when trading Gold or GBP.
The EUR / USD pair is considered an easy place for experienced traders to make money. This is because they can correctly estimate its price habits based on price action.
Whether you are a trader who is losing money or making windfall gains, the EUR/USD is a great option for improving your investments.
Benefits of EUR/USD Investing
The Euro US Dollar is the most traded currency pair by foreign currency traders for a number of reasons, including:
● The EUR/USD is available to trade 24/7 in whatever way is convenient for you.
● It is accessible to everyone with a leverage of 1:30 (personal) and 1: 500 (professional). Keep in mind, leverage can be risky.
●Take advantage of optimal volatility for all trading styles.
●Eurodollar trading also provides strong liquidity for fast and efficient order execution.
● Spreads are generally low among online brokers.
●High availability of information. EUR/USD trading offers you the opportunity to participate in the development of the Euro zone and the United States, where the factors affecting currencies are quickly and widely circulated.
●Opportunity to trade the policies of the world’s largest central banks ECB (European Central Bank) and the Fed (Federal Reserve).
What affects the price of the EURO/USD
The forex euro dollar pair represents the established relationship between the world’s largest economy, the United States, and the euro area. This is why economic news from either of these two economies is enough to affect the price of the EUR/USD on the forex market.
Here is a non-exhaustive list of US and European publications that affect the price of this currency pair:
● Central Bank Interest Rates (ECB & Fed)
● Central Bank Press Conference (ECB and Fed)
● Non-Agricultural Employment (NFP)
● Unemployment rate and wages
● CPI Inflation Rate (Consumer Price Index)
● GDP growth rate (GDP)
● Retail sales
● Durable goods orders and industrial orders
● Corporate spirit
● Consumer confidence
EUR/USD Trading Tips
Now let’s look at some EUR/USD trading tips:-
●Learn Before you start. It’s very important to learn and gain the experience about EUR/USD trading.
●Establish a detailed business plan for when and how to trade EUR / USD.
●Analyze the Dollar Index USDX to know the strength of the US National Currency.
●One can test trading strategy on a demo account.
●Adopt rigorous risk management and money management to preserve your capital without using too much leverage.
●Know how to be disciplined despite the potential time of loss.
All these forex trading tips will be very useful for you on a daily basis, but it goes without saying that regular practice on your trading account will allow you to gain experience!
Conclusion
The EUR/USD is very commonly traded pair in the forex market for several reasons. First, the euro and the US dollar are the currencies of the two most powerful world regions. Almost every day, these countries publish their economic indicators that affect EUR / USD.
In addition, the EUR/USD pair can be driven by important political news such as elections, trade agreements and tensions between countries. The Federal Reserve also the European Central Bank are the major central banks, which intervene in the economy leads to major moves in the foreign trade market.
But the important thing is that you must be an experienced player, so you should choose a demo account while starting this new journey.
