How Rates React

Considering a currency pair routinely involves two factors to identify when analyzing price trends.
If we stay with the example of the EUR / USD, one will have to monitor the European economy, as well as the markets in the United States.

HOW WILL THE DIFFERENT ECONOMICAL DATA'S INFLUENCE THE EUR/USD ?

BASE CURRENCY: EURO

If an economic statement such as job creation in the Euro zone is positive, it will strengthen the European currency as well as the EUR / USD rate.

If, on the other hand, the numbers are negative, the Euro will depreciate and the value of the EUR / USD will go down.

COUNTER CURRENCY: USD

The counter currency being the denominator, the effect will reverse.

If an economic statement on job creation in the U.S. is positive, it will strengthen the dollar and therefore decrease the value of the EUR / USD

On the other hand, if the data is negative, the Dollar will lose value and the rate of the EUR / USD will go up.