Gaining an understanding of the fundamental news that impact the foreign exchange market, or forex, is an important element of success for any serious forex trader. By knowing the major events that could influence currency values, traders can build a solid foundation to make informed decisions about when and how to place trades. In this article, we’ll discuss the key elements of fundamental forex news that traders need to pay attention to and how to effectively incorporate them as part of a well-rounded forex trading strategy. of the EUR/USD
The EUR/USD is the most widely traded currency pair in the foreign exchange market. As such, it is constantly affected by news and events around the world.
Recent news affecting the EUR/USD includes the European Central Bank’s decision to cut its deposit rate by 10 basis points in September 2019. This was a surprise move and a response to the global economic slowdown. The US economy has been relatively resilient in comparison and has been buoyed by strong consumer spending.
Other news that is influencing the EUR/USD is the UK’s decision to leave the European Union, which has caused the value of the Euro to fall against the US Dollar. The uncertainty over the UK’s economic future has left investors uncertain of the future outlook, and is likely to be a factor in the direction of the EUR/USD rate going forward.
Finally, the US Federal Reserve’s decision to cut interest rates in July 2019 is having an impact on the EUR/USD. Lower US interest rates have lead to an influx of global capital into the US Dollar, which has weakened the Euro relative to the US Dollar.
Overall, the fundamental news impacting the EUR/USD has been largely negative and has led to a devaluation of the Euro against the US Dollar over the past year. Investors will need to be mindful of any further developments in the global economic picture, as well as any potential changes in the political landscape that may affect market sentiment.