Understanding & Valuing The Euro
Learn What Economic Factors Affect The Value of the Euro
Other Major Currencies:
In 1999 it was decided that all of the countries in the European Union would adopt a common currency called the Euro. Over a 3-4 year period this currency gradually replaced all of the other existing currencies, and now the EUR/USD currency pair has some of the highest foreign exchange volume in the world.
The economic factors that influence the Euro are different than those that influence the dollar. Unlike in America where it is just one nation, there are multiple nations that make up the EU and the economic data coming out of each country can affect the value of the Euro.
It can be difficult to monitor all of the information coming from all of these countries, but the countries whose economic data tends to have the largest impact are France, Germany, and Italy.
Also any data that is directly released from the European Central Bank (ECB), especially a change in interest rates, can create large price swings in the markets.
