Basic analysis of USD and EUR correlation


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Euro is the official currency used in the European Zone and it consists of 18 member states of the European Union. USD stands for United States Dollar (USD). The pair of currencies has long prevailed in Forex and other foreign and local stock exchange platforms. It takes time to predict the value of the two currencies in the future. The pair has so far been rated as the best currencies that can perform pretty well in the future of the global economy. The euro has out – smarted the Sterling Pound that faced the challenges of the war that saw many countries in an economic floss.

According to the research done on the markets, the Euro accounts for averagely 30 percent of world output and contributes 20% to the existing world trade. On the other hand, United States of America contributes an average of 27% to global contribution and 17% of the World trade. The interpretation of the currency pair is that if the pair is trading at 1,3, it clearly translates that you need 1,3 dollars to purchase 1 Euro.


The currencies are affected by those factors that may face both. On that note, the difference in the rates between the two core banks i.e. European Central Bank and Federal Reserve will lead to a great impact when the two currencies are compared. When the latter bank invests more in the prevailing market, the dollar will surely grow stronger compared to its counterpart.

The prediction on the two currencies is on and you may be anticipating knowing the value of the two currencies in the future. Due to the current economic sanctions faced in the United States of America, it is evident that the Euro will outsmart the Dollar. This will greatly affect the market in most Stock exchange platforms, Forex not excluded. The best interpretation is that the dollar may face more challenges in keeping its pace in the market or rather the dollar will continue declining in its value with time.

 To continue, those who are eager to invest in the dollar may face a big surprise and economic downfall. Firstly, the Euro was less affected by any economic floss compared to the Dollar. The economic stability of European Union is way far better than that of the super power. Apart from that, the interest rates of all European Central Banks are higher compared to those of the Federal Reserve in the United States of America. Another major threat to the value of dollar is the fact that there are fewer jobs which directly leads to lower purchase of goods and services by customers.

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Author: Binary Experts

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