The landscape of EU economies had shifted momentously since the beginning of 2020 when we were amidst the coronavirus pandemic and the instigation of the Brexit deal. The health of each nation’s economy directly impacts their currency since a rise in inflation, for example, would likely have an adverse effect on exchange rates.
Because of this, as a forex trader, you must keep track of events that could affect a country’s economy, such as the monthly job report and changes in interest rates. You could do this by making use of an economic calendar.
You could also take part in forex trading on Plus500, for example — a contract for difference (CFD) trading platform that will enable you to speculate on the price movements of some of the world’s most popular trading pairs.
One of the world’s largest and most popular currencies is the Euro. Since Europe was severely affected by the effects of COVID-19, the value of the currency has changed significantly in the last year. This article will look at the Euro’s value difference between October 2020 and October 2021 to see how the previous twelve months have treated the currency.
October 2020 In mid-October 2020, Europe was fully submerged in the depths of the coronavirus pandemic, with more than 240,000 people losing their lives and almost 7 million infected. The continent had suffered significant economic losses since recurrent lockdowns had caused activity in many sectors to grind to a halt completely, supply chains to be disrupted, and demand for essentials
like fuel to decrease.
Gross domestic product (GDP) is a key economic indicator that can inform you about the health of an economy. It measures the value of all goods and services made within a specific country in a certain time frame. In the second quarter of 2020, GDP in Europe fell by around 40%.
The EUR/USD is one of the most popular trading pairs, and on the 30th October 2020, the Euro was outperforming the dollar, and one Euro could purchase you 1.1672 dollars. However, the US was the worst affected country by the pandemic and, on this same date, recorded nearly 970 fatalities.
October 2021 The outlook for Europe’s economy in October 2021, however, is
looking far more attractive. The International Monetary Fund (IMF) released its latest World Economic Outlook on 12th October 2021 and predicted that the EU’s GDP would rise by 5% in
The continent’s economic recovery spurs this positivity has overtaken both China and the US, and more than 70% of adults in the EU have been fully vaccinated.
In 2020, more than 3.5 million jobs were lost, and though experts predict that this will not fully rebound until 2023, the EU is planning to provide €800 billion as a recovery fund to ensure that it does. At the time of writing, one Euro could purchase you 1.595 dollars, which is just as much a
reflection of the Euro’s strength as it is of the US economic recovery. The world has changed significantly in the last twelve months. Though the virus is still apparent, strategies have been enforced to enable economies to continue gaining traction while keeping everyone safe.
Of course, there have been some roadblocks along the way that have disrupted the momentum of the continent’s recovery, such as the emergence of the Delta variant, and it’s clear that we’re not out of the woods yet.
Therefore, if you’re trading in the forex market, you must keep up to date with the latest news releases and use an economic calendar so that you can try to stay one step ahead of price
movements.
