InstaForex

Thursday, August 30, 2012

Inside Trade | EUR/USD



The most famous of all the “majors,” EUR/USD is truly the crowd's favorite. The demand on this currency pair is undoubtedly high. The very attractive pair owes their gratitude from their respective countries. Euro being a unified currency on most first world countries in Europe and the US dollars belonging to one of the super powers of the world, none other than the United States of America.

The euro-dollar currency pair was shown for the very first time on the 7th of April in 1989 with an initial rate of 1.0445. At a statistics almost 5 years ago, shows that 27% of all the operations in Forex are done with this pair. Aside from its demand, its low volatility also attracts both the experienced and less-experienced traders. The risk of a spike is very low in this currency pair but its movement is active enough for profitable trades.

Traders who are trading with this currency pair must be aware and continuously monitor the economic environment in both United States and the Euro zone. The decline of the value of euro and its rumored impending break-up is the most significant topic hovering over this pair. The deteriorating value of euro is due from the 2008 financial crisis which devastated some countries of the Euro zone and left with tons of debts. According to some experts, the judgment regarding the fate of euro will fall early next year.  

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