EUR/USD Exchange rate
EUR/USD holds steady above 1.0750 after German IFO
EUR/USD continues to fluctuate in daily range slightly above 1.0750. The data from Germany showed that IFO Business Climate Index improved to 93.3 in March from 91.1 in February, helping the Euro stay resilient against the US Dollar in the European session.
GBP/USD regains 1.2250, Bailey speech eyed
GBP/USD is recovering above 1.2250, staging a tepid comeback in the European session. A broadly subdued US Dollar is lending support to the pair amid an improved market mood on ebbing global banking fears. Traders await Bailey's speech for fresh impetus.
Gold bulls take a break as markets calm down
Gold is trading right above $1,970 at the time of the writing, as the bright metal extends the retracement triggered after topping at the $2,000 round resistance in the latter stages of last week.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Calm, so far
It's been comparatively calm in markets to start the week as Investors better understand the problems facing American banks today are not remotely similar to the subprime mortgage crisis.
THE MOST TRADED CURRENCY PAIR
The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. The popularity of Euro Dollar is due to the fact that it gathers two main economies: Europe and the United States of America. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.
The EUR/USD reached an all time high of 1.6038 in July 2008 and a record low of 0.8231 in October 2000.
EUR/USD FORECAST 2023
In her article “EUR/USD Price Forecast 2023: Control inflation or avoid recession? Is there a recipe for success?” published at the end of the year 2022, Valeria Bednarik talks about the EUR/USD Forecast and explains that "financial markets will continue to depend on inflation and economic growth". "EUR/USD long-term corrective advance will likely continue in the first quarter of 2023".
The EUR/USD pair kickstarted 2022 with a weak tone, but at the time, nobody would have imagined it would end up bottoming at 0.9535. Financial markets were generally optimistic about the post-pandemic economic comeback, despite some residual aftertaste mostly linked to putting back the global machine in motion. Heading into 2023, there is uncertainty over central banks succeeding in guiding economies into a soft landing.
MOST INFLUENTIAL CURRENCIES FOR EUR/USD
The EUR/USD pair can also be impacted by other currencies, in particular GBP, CAD, JPY, CNY, and AUD. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD, GBP/JPY and EUR/JPY
MOST INFLUENTIAL ORGANIZATIONS FOR EUR/USD
The organization that most impact has nowadays the EUR/USD is the Federal Reserve, the central banking system of the United States of America created with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is Fed's Chair, serving in that office since February 2018.
The Board of Governors (also known as the Federal Reserve Board) is carefully observed. The board meets several times per year and announces the interest rates. If rates remain unchanged, attention turns to the tone of the FOMC (Federal Open Market Committee) statement. Also particularly significant are the 12 Federal Reserve Banks that make up the Federal Reserve. These Federal District Reserve Districts issue their own statements and research data that give hints about the health of the US economy and might as well influence dollar-related currency pairs.
The US Government is as well an institution of great importance for the EUR/USD pair: events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar and the currencies traded against it.
Not only American institutions influence the EUR/USD pair, European too of course. And the number one organization is the European Central Bank, which is the central bank for the euro and administers monetary policy within the Eurozone, comprising 19 member states of the European Union and is one of the largest monetary areas in the world. ECB's main objective is to maintain price stability for the Euro while setting and implementing the monetary policy for the Eurozone (including interest rates). It also conducts foreign exchange operations and takes care of the foreign reserves of the European System of Central Banks. Christine Lagarde is ECB's President since November 2019.