EUR / USD is the most traded currency pair in the world. The combination of the euro, the representative currency of Europe, and the dollar, the key currency of the United States, has a large transaction volume, so the price is stable, so it can be said that it is actually a currency suitable for Forex beginners. To put it the other way around, it is difficult to make a big profit by trend following because it is difficult to create a big one-sided trend. According to the Bank for International Settlements statistics, the transaction share by transit pair is 1st in Eurodollar, 2nd in Dollar Yen and 3rd in Pound Dollar.
Recommended for Forex beginners to advanced users. Since extreme price movements are unlikely to occur, it is unlikely that all funds will disappear with one shot. There is a sense of stability, but the price movement does not occur so much compared to other euro pairs and pound pairs, so a big trend does not occur easily. If anything, it will be a currency pair for swing trading.
Recommended trading time
Eurodollar trading becomes active when the London market opens. It will be actively traded until the end of the New York market. We do not recommend trading as Asian time is very quiet and lull.
Recommended trading style
Eurodollar does not fluctuate very much. Therefore, it may not be very suitable for scalping and day trading. It will be a currency pair for swing trading.
Economic indicators to watch out for
There are so many euro indicators, as well as economic indicators such as Germany, France and Italy. There are a lot of indicators, but if you keep interest rate policy, GDP, and unemployment rate low, it will be okay for the time being.
The US dollar is also the key currency, and it has a great impact on all currency pairs, not just this currency pair. Therefore, it is necessary to pay attention not only to the policy interest rate, GDP and unemployment rate, but also to the international situation such as politics, social situation and war.
When the euro moves
The euro is the common currency of the European Union. Therefore, there are many things to see because they are influenced by many European nations. Of particular note is Germany. It has the greatest power and influence in the European Union, so it has a huge impact on the market.
When the US dollar moves
Not only US indicators, but also US government bonds (10 years, 30 years), Nikkei Stock Average, crude oil prices, etc. will affect. Also, in the case of the United States, as it is called the police of the world, it is very sensitive to the influence of world affairs. Please note that some economic sanctions and military activities can move the dollar significantly.