Learn the basics about the EUR/USD forex pair, what influences its price and how to perform a solid EUR/USD analysis.
The EUR/USD currency pair stands for the euro against U.S. dollar. It's the most traded currency pair and it include the currencies of the European Union (EU) and the United States (USD). Traders and the public use it to determine how many dollars are required to buy one euro (which is the base currency). In this video we'll talk about the bascis of EUR/USD forex trading.
The EUR/USD forex pair is undoubtedly number one in terms of trading volume, as it represents the two largest economic powers globally. The EU is actually second behind the US in terms of nominal GDP, where it still holds a lead over China.
Forex trading for beginners usually starts with learning how to buy and sell the EUR/USD, as it has at least one currency that most people have heard of.
The two most important things that you have to consider when doing a EUR/USD analysis is the influence of the two central banks in the EU and the U.S. The ECB and the FED and their interest rate differential impacts them more than any other economic factor.
For example, EUR/USD trading levels can change when the FED makes the dollar stronger (and vice versa with the ECB). Positive and negative news from the two economies are also important variables in any EUR/USD trading strategy - GDP numbers, unemployment and inflation on both sides of the Atlantic, all have a role to play if you want EUR/USD explained.
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Please note that this video has been uploaded prior to the adoption of the product intervention measures on CFDs to by the European Securities and Markets Authority (ESMA).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
