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Exchange Rates - Influencing Factors

All forex trading involves the exchange of one currency with another.  At any one time, the actual exchange rate is determined by the supply and demand of the corresponding currencies.  Keep in mind that the demand of a certain currency is directly linked to the supply of another.  Likewise, when you supply a certain currency, it would mean that you have the demand for another currency.

 
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THE EURO

The euro is the single currency shared by (currently) 17 of the European Union's Member States, which together make up the euro area. The introduction of the euro in 1999 was a major step in European integration. It has also been one of its major successes: around 330 million EU citizens now use it as their currency and enjoy its benefits, which will spread even more widely as other EU countries adopt the euro.

 
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