EURGBP currency pairEURGBP currency pair consists of two monetary units, namely the euro and the British pound. Around this pair goes very many misconceptions, the main of which is that it has a calm trends without any abrupt discontinuities.
Some site owners recommend it for beginners, arguing that it is easily predictable, and thus it has high volatility.
All this is a myth and misconceptions, and I will try to explain why.
Initially, let's look at both currencies individually but would understand that actually affects the price movement.
We begin with the British pound. GBP - the currency of the third in the world by the proliferation and trafficking. Popularity applying GBP second only to the dollar and euro, but it was not always. Earlier, before the Second World War it was the first British world currency, which used a lot of countries. Pound was so popular and widespread that some countries at the local level was used as a second currency after the state.
This is due to the fact that the United Kingdom was the country colonizer and it went to the pound in its many colonies. However, after the Second World War gave way to pound its positions increase US economy and its dollar. To date, the UK has one of the strongest economies in the world. Do not forget that the UK is a member of the European Union, so it has a very strong trade relations between Western Europe and the US.
Therefore, the pound is largely influenced by trade with the United States and Europe, energy prices. Particularly strong news that really moves the pound, is the data on interest rates Bank of England. It is not necessary otkidat and internal key indicators for the industrial sector, on jobs, GDP, as well as the statements of the government.
If you predict the pound is difficult, but based on economic performance is still possible, with the European currency, things are a bit more complicated. The euro is the currency of the eurozone countries. As you can imagine in the euro area it includes a large number of countries that have a greater or lesser degree of influence on the euro. So, for example, the crisis in Athens very much struck by the international prestige of the euro weakened significantly its course.
To predict in the long term the euro at this stage is very difficult, because very contradictory data on the different countries can produce quite unexpected results. However, if the currency pair trading with the euro to pay particular attention to recommend the strongest indicators of the eurozone countries, such as Germany and France. Normally, the good news in terms of the German economy is more than can move the euro up against the poor performance of other eurozone countries.
If we talk, some of the indicators is strongly driven by the euro, then with courage, I can say that this is the interest rate of the European Central Bank, unemployment rates (by country) as well as consumer indices. It is also worth noting that in the last year because of the tense situation in trade relations with Russia, the European currency has become politicized.
Therefore it is always recommended to keep track of the statements of heads of state, as well as information on the sanctions policy, which is conducted in relation to Russia. You should understand that every time Europe imposes sanctions, it beats, and its economy.
EURGBP currency pair is very active during the European trading session and is very passive at the Asian. Fluctuations currency pair may exceed 150 points for the trading session. Do not forget that on the economies of both countries and affect the dollar, as both countries have a strong relationship with the United States. Therefore it is necessary to take into account fundamental indicators of the US and their impact on the euro and the pound.
In conclusion, I hope that debunked the myth of easy predictability of the currency pair EURGBP, as the euro at this stage one of the unpredictable rates, and hence the currency pair, too. Thank you for your attention, good luck!
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