Is the Euro worth investing in? Analysis of the trend of the euro exchange rate in 2021

　　The euro can be used as the counterparty currency for US dollar investment.Due to the high proportion of the euro and the large transaction volume,the euro is the most stable currency among the major non-dollar currencies.If you are a newcomer to the market,the euro is a good choice,you can use the euro as the main operating currency.After all,the euro has been listed for less than ten years,and the historical investment trend is more in line with technical analysis.The trend is stable,the trading volume is large,there are few human factors,and it is not easy to be manipulated by any organization.Only from the perspective of technical analysis,the grasp of the long-term trend of the euro is more effective,and the grasp of the key points,trend lines and patterns is relatively reliable.

　　In theory,buying more bonds would lower yields,thereby depressing the value of the euro.If Europe now buys more bonds than before,and the Fed buys the same amount,the euro should fall.The euro has been falling since the February 25 auction of U.S.7-year Treasury bonds underperformed.If Europe picks up the pace of bond purchases and the Federal Open Market Committee(FOMC)continues to buy$80 billion in Treasuries and$40 billion in mortgage-backed securities(MBS)per month,it will cause European bond yields to fall relative to U.S.bonds,thereby pushing down the euro exchange rate.

　　From January 1999 to November 2000,the euro started at 1.183 on the first day after the sale and reached a high of 1.19 at one point.However,after a week of modest gains,it entered a sustained decline.While there have been some fluctuations during this period,there has been a general downward trend.

　　The euro fell to lows again in mid-2001,with the euro fluctuating around$0.85.The euro's poor performance seems to indicate that the euro has been in a"dilemma",and by 2001,the US economic bubble burst,corporate financial scandals and the fallout of the 9/11 terrorist attacks plunged the US economy into recession.Economic growth fell to 0.8%in a year and hasn't improved.During the same period,due to the initial progress of economic reform,the total production growth rate of the euro area in 2001 was 1.5%,surpassing the United States for the first time.The slightly better economic situation in the euro area should promote"a stronger euro and a weaker dollar",but the euro still continued the downward inertia of the previous two years,showing an abnormal operation of"strong economy and weak currency".

　　In 2002‐2004,with the good news of the circulation of the euro,the euro entered a period of long-term appreciation.On February 1,2002,the exchange rate of the euro rose all the way from the price of 0.856.After a slight correction from February to June,the euro broke through the key 1:1 price in mid-July.Over the next four months,the euro was largely close to parity with the dollar,before breaking through 1.01 and then 1.02,appreciating 20%for the year.

　　In 2003,the euro appreciated frequently.On May 23,the price of the euro broke through a historic breakout.Since then,the euro's movement has been rising.It rose to 1.224 on December 9 and was close to 1.26 on December 31.By August 2004,the euro had risen to a record high of 1.392.

　　In 2005,the euro showed a clear downward trend.Its exchange rate against the dollar fell from its peak in late 2004 and continues to decline.

　　What is the historical peak of the euro exchange rate?

　　The highest EUR/USD exchange rates were on April 22 and July 15,2008.The euro has twice reached an all-time high of$1.60.

　　On May 17,2008,the highest exchange rate of the euro against the Taiwan dollar,the highest benchmark price was 11.1699.

　　First of all,it is necessary to understand that the political structure of Europe is relatively special,with many interests,opinions and differences,so it is not easy to form a consensus decision.As a result,the EU's ability to influence the euro's exchange rate will also be greatly reduced.Especially when Europe and the US are on exchange rates due to divergent interests,there is no doubt that the US will prevail.During the appreciation of the euro in 2004,the EU could only verbally call on the United States to intervene in the exchange rate,but could not take concrete and effective measures.Therefore,the euro may not be the right investment for most people.

　　According to the latest data from the U.S.Commodity Futures Trading Commission(CFTC),net long positions in the euro in speculative accounts have declined for the fourth straight week.Speculators'net speculative long position in the euro fell by 2,694 to 165,943.Despite favorable factors such as the successful EU social bond issuance and the trajectory of the Brexit deal negotiations,the euro has not been able to escape its continued downward trend of net longs.

　　After the advent of the euro,but its exchange rate trend is relatively weak.Mainly because of the lack of trust and confidence in the euro and Europe,which has been the crux of the euro's failure to rebound strongly so far.The intrinsic value of the euro is stable,and the cohesion of the euro to the countries of the euro area is evident.The euro has been recognized internationally as a major international currency,but it will take at least three to five years for the euro to gain a strong position.With the development of EU integration and the expansion of the euro area,the euro is undoubtedly the second largest international currency in the world.

　　The euro was officially launched on January 1,1999.Its internal value has remained stable for more than three years,but its exchange rate has been declining.The general situation of its operation is the deviation of external value from internal value,which is mainly due to people's psychological factors,namely people's distrust of the euro.In the future,the economic development of the euro area will continue to be sluggish,prices will continue to remain stable,the use of euro coins and banknotes will further promote economic and political cooperation between countries,and the value of the euro will become increasingly apparent and gradually accepted by people.

　　Be sure to use your budget reasonably for financial management,and remember not to use the funds necessary for life as capital.If you want to be a successful foreign exchange investor,you must first have sufficient investment capital.If the loss will not affect your life,remember not to use your living funds as trading funds.Excessive capital pressure can mislead investment strategies,increase trading risk,and lead to bigger mistakes.

　　Take advantage of the free simulation account and learn to trade foreign exchange.Beginners should learn patiently step by step,don't rush to open a real trading account,and don't compare with others,because everyone needs different learning time and different experience.In the learning process of simulated trading,the main goal is to formulate personal operation strategies and types.When the profit probability is higher day by day and the monthly profit gradually increases,it means that you can open a real trading account to check foreign exchange speculation.

　　When the number of profitable trades is greater than the number of losing trades,and the total account is increasing,it means that you have found a trick to speculating in foreign exchange.However,if you lose 2,000 euros on five trades and gain 3,000 euros on another trade,even though the total account is increasing,it may just be luck,or risk winning with the largest volume of trades,and caution should be exercised operation,and adjust the operation strategy in time.

　　The foreign exchange market is the most unpredictable financial market in the world,and foreign exchange risks are both general and sudden.Therefore,the key to avoiding these risks is money management.In the early stage of investment,the first thing to do is to save your own funds.In order to survive in the foreign exchange market,you must have a complete set of capital management measures.If a new entrant can be cautious in fund management and stop losses in time when losses occur,it can leave some room for future trading.Maintaining strength is the key to survival in the futures market,and through constant forex training and forex learning,you will eventually become a successful trader.

　　The foreign exchange market is a game market,when someone makes money,someone loses money.If you want to make money in foreign exchange trading,you must have a good psychological quality,so that you will not be affected by the market.Foreign exchange transactions are often subject to high psychological pressure,so when the exchange rate fluctuates,you should keep calm and sober thinking,and analyze the impact of various news on the foreign exchange market.Therefore,people with poor psychological quality are not suitable for foreign exchange investment.

　　The fundamentals of foreign exchange are often discussed in foreign exchange transactions,which is the root cause of exchange rate fluctuations.Therefore,when conducting foreign exchange transactions,you should learn more about international politics,economy and finance,so as to judge supply and demand factors.Changes in supply and demand directly lead to foreign exchange.price fluctuations.Fundamental analysis includes macroeconomic indicators,including GDP,interest rates,inflation,unemployment,money supply,etc.,and asset markets include stocks,bonds,and real estate.