USD

Forex Trading the EUR/USD Pair € EURO and $ US Dollar

26 August, 2017 - 10:22

Thanks to modern technology and air travel, our world is a lot smaller and as you travel, you exchange your money for another currency which results in a difference in value. How can there be such a difference in value between one currency and another, and is it possible to profit from the difference…Hi, I'm James and I like you to join me as we discover trading.

USD EUR Currency Pair


There are four fundamental determinants to the USD EUR Currency Pair Forex Exchange Rate

Four factors are identified as fundamental determinants of the real euro to dollar exchange rate: The international real interest rate differential; Relative prices in the traded and non-traded goods sectors; The real oil price; The relative fiscal position.

The basic theories underlying the dollar to euro exchange rate:

Law of One Price

In competitive markets free of transportation cost barriers to trade, identical products sold in different countries must sell at the same price when the prices are stated in terms of the same currency.

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