What are the factors that affect the exchange rate between euro and USD?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we believe that the exchange rate between the euro and USD is primarily determined by market forces. While government policies and central bank actions can have an impact on the exchange rate in the short term, the long-term trend is driven by economic fundamentals. Factors such as interest rates, inflation, economic growth, and trade balances play a significant role in determining the exchange rate between these currencies. It's important to note that the exchange rate is a complex and dynamic system, and it can be influenced by a wide range of factors. Therefore, it's crucial for traders and investors to stay informed about the latest economic developments and market trends to make informed decisions.
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