Fundamental Factors Affecting the Euro
Fundamental Factors Affect Eastforexcashbackg the Euro cashback forex Eurozone cons cashbackforexbtcts of 12 countries, Germany, France Italy, Spain, the Netherl East forex cashbacks, Belgium, Austria, Finland, Portugal, Ireland, Luxembourg and Greece, all using the euro as the currency in circulation The European Central Bank controls the monetary policy decision-making body of the eurozone is the Central Bank Committee, consisting of the Executive Committee and the central banks of the 12 member countries The executive committee consists of the president of the ECB, the vice president and four members TheEurozone:The Eurozone consists of 12 countries, Germany, France Italy, Spain, the Netherlands, Belgium, Austria, Finland, Portugal, Ireland, Luxembourg and Greece, all of which use the euro as their currency of circulation EuropeanCentralBank (ECB): The ECB controls the monetary policy decision-making body of the euro area is the Central Bank Committee, which consists of the Executive Board and the presidents of the central banks of the 12 member countries The Executive Board includes the President of the ECB, Vice President and four members ECB President, WimDuisenberg (Netherlands) Vice President, LucasPapademos (Greece) Member (Chief TomassoPadoa-Schioppa(Italy), EugenioDomingoSolans(Spain), SirkkaHamalainen(Finland) ECBs policy objectives: the primary objective is Price stability has two main bases for its monetary policy, one is the outlook on price direction and the risk of price stability Price stability is mainly measured by the adjusted Index of Consumer Prices (HarmonizedIndexofConsumerPrices (HICP)), so that its annual growth is less than 2% HICP is particularly important and consists of a series of indices and expected values, and is a measure of The ECB sets the reference value of M3 at 4.5% per annum. The ECB meets every two weeks on Thursdays to set a new interest forexcashbackcalculator target. This rate is the spread between this rate and the U.S. federal funds rate, and is one of the factors determining the EUR/USD exchange rate Eurodeposit (Euribor): 3-month European euro deposits are deposits in banks outside the euro zone that are held in euros. Eurodeposit (Euribor): 3 month Eurodeposit refers to deposits in Euros in banks outside the Eurozone. Similarly, the spread between this interest rate and the same interest rate in other countries is also used to assess the level of the exchange rate. An important factor for EUR/USD is usually the German 10-year government bond as a benchmark. If its interest rate level is lower than that of the U.S. Treasury bill during the same period, then a narrowing of the spread (i.e., a rise in German bond yields or a fall in U.S. Treasury bill yields) would theoretically push up the EUR/USD exchange rate, so the spread is generally more informative than the absolute value of the two EconomicData: The most important economic data comes from Germany, the largest economy in the Eurozone. The main data include: GDP, inflation data (CPI or HCPI), industrial production and unemployment rate, and if looking at Germany alone, the IFO survey (a widely used business confidence index) and the fiscal deficit of each member state, in accordance with the Eurozones Stability and Growth Pact (the Stability and Growth Pact). In accordance with the StabilityandGrowthPact, the fiscal deficit of each country must be kept below 3% of GDP, and each country must have the goal of further reducing the deficit CrossRateEffect: cross-exchange rate impact as with the U.S. dollar exchange rate, the cross-plate will also affect the euro exchange rate EuroFuturesContract( Euribor: The March Euro Futures Contract This contract value shows the markets expectations for the 3-month Euro deposit rate (and the contracts maturity date) For example, the spread between the March Euro Futures Contract and the March Euro Futures Contract is the fundamental change that determines the future movement of EUR/USD Political factors Compared to other exchange rates, EUR/USD is most vulnerable to Political factors, such as domestic factors in France, Germany or Italy, political and financial instability in the former Soviet Union countries can also affect the euro, as a significant portion of German foreign exchange investors are invested in Russia.