02 Jan TRADING EDUCATION: EUR AUD
The EURUSD is known colloquially within forex trading as the EuroDollar or rather less frequently as ‘The Fiber’.
By far the most traded pair within the Forex market, the EURUSD represents two of the world’s largest economies, the Euro Zone (EUR) and the United States (USD). As a result, it can see significant volume levels whilst maintaining a low broker spread making it one of the most popular currency pairs for new traders as they learn to trade forex.
In the case of the euro dollar forecast and the market itself, because the EURUSD represents two of the world’s largest economies it can see significant volatility when economic data is released within either economy. Traders should also note that the interest rate differential between the European Central Bank (ECB) and the Federal Reserve (The Fed) can be a key factor in the overall trend within the EURUSD. Due to this forex pattern the actions of both the ECB and the The Fed is watched closely by ‘market makers’ for signs of new directional trends and future uncertainty.
There are several clear forex patterns regarding the euro dollar forecast, most notably that the EURUSD shows a viable positive correlation to the GBPUSD. This is primarily due to the positive correlation of the EUR and the GBP. As a result, as you learn to trade forex you may see the EURUSD and GBPUSD experiencing somewhat parallel moves during trending markets.