Dollar-Euro Exchange Rate Swings Impact Global Economies and Financial Markets
The dollar-euro exchange rate is a major player in the world's largest forex market, with a daily turnover of $1.3 trillion. This rate is influenced by both economic fundamentals and other factors, leading to large swings and turning points. The high volatility and frequent misalignment of the rate can have significant consequences for real economies, affecting trade and internal imbalances. The relationship between exchange rates and trade has changed, impacting international financial markets.