SOLUTION:-
The euro to dollor conversion tells you how many dollore the
euro can buy according to the exchange rate it compares the euro
value to dollore value. Exchange rate is that its exchange rate
changes everyday this is because its traded on foreign exchange
market the euro market depend on three factors the most important
is the European Central benchmark interest rate II Investors take
into account the debt levels of individuals country. Third the
strength of European economy. Based on these factors Forex traders
decide whether they think the currency will increase in value or
not when economic growth is strong or when interest rates are
Rising odds are traders will predict an increase in value they
didn't get the price of others married the same data and decide the
value of currencies will decline instead these factors bid the
price down.
The euro railed 14% against the dollor in 2017 it remain between
dollor 1.09 until Mav but it September 2017 it became dollor 1.20
Europe began lookong like a stronger economy but after the
investigations into the connection between president Trump
Administration and Russia worried investors the European to dollor
1.16 after Germany's close election but again its strength at the
end of the year again so the euro is expected to go again
higher.
Price and inflation:
- Inflation has a key factor that affects all currencies
including the Europe in general countries with high levels of
inflation relative to other countries will normally see their
currency depreciate so that the prices of goods between countries
remain relative equal in addition higher than expected inflation
will result in Central Bank raising interest rates to tame
inflation.
- BP measure of inflation is the eurozone in the consumer price
index the indicator calculate the price of basket of goods at an
average household is likely to purchase typically follow the core
consumer price index which is normal consumer price index
calculation including energy and food prices energy and prices tend
to be volatile and can be greatly influenced by 10 degree supply
and demand in balances as well as external random factors such as
weather which can destroyed the consumer price index number.
Monetary policy :
- Every currency is affected by the monetary policies of its
respective Central Bank for the euro that is European Central Bank
and decisions regarding interest rates made by the European Central
Bank Canal significant impact on road generally the European
Central Bank press conference is friend to be the most important
news to follow because interest rate change are usally anticipated
well in advance by the market the structure of press release is
Tripathi there is a prepared statement followed by an open press
question period it is the question period that tends to cause the
most currency volatility.
Economic growth:
- The next Saturday significant influence on euro is the overall
economic output of the eurozone the economic growth and the health
of the gross domestic product which is a periodic measure of the
value of goods and services produced in the euro so the next
Saturday significant influence on euro is the overall economic
output of the eurozone the economic growth and the health of the
economy is typically measured by the gross domestic product which
is a periodic measure of the value of goods and services produced
in the eurozone in general growth in GDP is a sign that economic
strong and healthy which is positive for the currency.
- The eurozone GDP is quarterly report it prepared by Hero start
unreleased about 2 months after the end use release does tend to
move the currency market specially if there is a surprise in the
actual release relative to expectaltions
Balance of payment :
- Will look at specifically the trade balance and the current
about the current account is one of the three accounts that make up
the Balance of pyments for a country this reports measure how
country interacts with other countries with respect to trade
balance income payments in other payments current account reports
is a monthly report usually during the second week if each month by
integrating this report a current account surplus means that there
is more capital flowing into the economy then there is a existing
the country which is positive for the currency this occurs when
exports exceed import a current account deficit means the opposite
More financial capital is leaving the country then there is coming
in which is negative for the currency of Germany and France at two
of the largest countries in the European market many traders will
focus in the current account reports for these two Nations.
Hundreds of economic indicators that affect the Euro exchange
rate
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