February 9, 2014

Relevant Forex News Items for EUR

forex news

One of the most favoured currencies in the forex market is the European Euro which is almost as popular as the American dollar. In fact, combined, these two currencies form the most traded currency pair in the whole forex industry. This means that a lot of forex news attention is devoted to the European Euro.

If you are a new trader on the block then it is likely that you are planning to trade in some currency pair where one of the currencies is the European Euro. If this is indeed the case then you will have to keep an eye on forex news items that affect this currency. Here are some of the forex news items of relevance in this regard.

European Interest Rates

Interest rates are easily the most important fundamental factor in the forex market. Like all countries, the European Union uses interest rates to balance inflation and growth of the economy. Interest rates can be described as the cost of money in any economic setup which is why forex news items about them are so important. Higher interest rates will see the Euro’s prices go up and vice versa.

GDP of Germany and the EU

Germany is the largest economy in the European Union which allows its GDP growth rates along with the GDP growth rates of the EU to have a great effect on the way the Euro moves in the forex market. Therefore, you have your eyes on these two types of forex news items as well if you are targeting the Euro. When the GDP of Germany and the European Union improves, the value of the Euro also improves.

Harmonised Consumer Price Index

The Harmonised Consumer Price Index or HCPI is what the EU uses to measure the stability of prices within the Block along with inflation rates. There are rules that all member countries have to comply to and one of these is related to the HCPI.

Effectively, the HCPI is an important marker for projecting the movement of currency pairs involving the Euro. A forex news item showing low HCPI value will be a harbinger of improving Euro forex rates.

Unemployment Numbers

Forex news items on unemployment have always had a tendency to affect the way currencies of countries or trading blocks move. The same is true in the case of the Euro wherein the unemployment rates of the European Union are the governing factor. Low unemployment will be a sign of the Euro’s prices rising.

Trade Balance

Forex news items about trade balance numbers between the European Union countries and the rest of world also have a major impact on the way the Euro moves in the forex market. Essentially, if the news reveals good trade balance of the European Union then the value of the Euro will improve in the forex market.

German and EU Industrial Production

All forex news items about Germany’s and the EU’s industrial production are relevant as well. High industrial production will naturally precede improvement in the valuation of the European Euro and vice versa.



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