When should I buy Euro?
Since they combine not high spread and good liquidity, usually these two concepts are closely related, especially when trading using a floating spread.
At the same time, the growth in the value of currency pairs can be either direct or relative, if the trend movement began under the influence of positive factors directed at the Euro currency itself, then such a trend is usually more stable and long-lasting.
But there are other variants when one of the named currency pairs starts to rise in price because of falling of a quoted currency rate, in this case, the trend has no stable tendency and is less stable. In this case, the motion occurs only one, a certain pair.
1. The positive news is coming out in the countries of the member states of the European Union, and this should be really powerful messages from the sphere of finance, economy or politics. “Factors affecting exchange rates” Listed in the article on the previous link.
2. cheaper US dollar, at least go up the currency pair EUR / USD, these two currencies since the beginning are competitors in the money market, so as soon as the US dollar begins to weaken, investors prefer to transfer their savings in the European currency
3. Under the influence of third countries or other external factors, the US dollar has long ago lost its reliability, therefore very often large corporations and concerns translate their calculations solely to the euro, The same in most cases stimulates an upward trend.
4. If the rate of the second currency falls in a currency pair, in order to track that event, it is necessary to carefully analyze each news on the quoted currency, and it will have to be done at the corresponding forex trading session. For example, for the pair EUR / CAD on the American, and for the EUR / JPY Asian trading session.
5. Raising the discount rate almost always slows down inflation and causes positive changes in the rate.
If you want to purchase this currency for speculative purposes, do not panic and buy it when the rate goes down rapidly, and the closer this value is to the $ 1.20 mark for the euro, the more profitable your purchase. In the long term, the European currency will only appreciate in relation to the US dollar, as the latter is practically on the verge of collapse.