Eur-USD - Biggest factors influencing price

[sak07]

Hi Guys,

Im more a fixed income guy than FX and have a pretty newbie question. In the current market climate - what factors do you consider to have the biggest affect on Eur USD price moves? And how do you think the weightings/influence of these factors change in a sideways moving market compared to the current environment?

I.e. are interest rates the biggest dictator of price movement in the current market? Or Oil? Have increased FDI flows from sovereign wealth funds into US banks increased the influence of the equity markets in the Eur USD space? Welcome any input

Thanks

 

[north5]

IMO - the biggest factor moving prices in forex is speculation. Underlying fundamentals such as balance of trade/interest rates will set limits on this and also inform the speculators - but I don't believe they set the main pace or size of the moves.

 

[Pippy5000]

Any pair containing USD will be easily moved by oil.. I couldn't say it's the biggest factor but I've watched a big drop in oil directly coincide with a big rise in the USD many, many, times. You need to pay attention to news regarding gasoline inventories in the US. Last time the actual numbers were way off what was expected and it caused a monstrous USD surge and oil fell to $57 per barrel (WOW).

 

[wouste]

Any pair containing USD will be easily moved by oil.. I couldn't say it's the biggest factor but I've watched a big drop in oil directly coincide with a big rise in the USD many, many, times. You need to pay attention to news regarding gasoline inventories in the US. Last time the actual numbers were way off what was expected and it caused a monstrous USD surge and oil fell to $57 per barrel (WOW).

I believe oil is also one of the biggest factors.
But it's just the economy in his total package that influences the price.
The better the economy the higher the prices will rise...

 

[gamma]

Lets not forget the interest rate factor

 

[Alibubble]

Yea there's a bunch of factors that affect the general prices that are important to take into account.

Small fluctuations are probably just the result of speculation and not large market factors or conditions.