Introduction to Hong Kong Dollar (HKD)
The official Hong Kong’s currency is Hong Kong dollar with code “HKD”. It is made up of 100 cents. The Hong Kong Monetary Authority is the government’s board for both Hong Kong’s de facto central bank and the Hong Kong dollar. As of April 2019, the Hong Kong. Dollar has become the world’s ninth most traded currency. The Hong Kong dollar is used in bordering Macau as well as its use in Hong Kong, where the Hong Kong dollar spreads together with the Macau Pataca.
History of Hong Kong Dollar (HKD)
Introduction to Euro (EUR)
The official legal tender of 19 out of European Union’s 27 member states are The Euro (code – Euro). This collection of territories is known as the Eurozone. As of 2019 it has about 343 million citizens. After the US dollar, it is the second-most traded currency on the FX exchange market.
History of Euro (EUR)
The Euro’s starting place was in the Maastricht Treaty (1991). It is an understanding of the former 12 nations of the European Community. They are France, Denmark, Germany, Italy, Belgium, Ireland, the Netherlands, Spain, United Kingdom, Portugal, Greece, and Luxembourg. They recommended the formulation of Economic and Monetary Union (EMU). The bargain required a typical unit of trade, the euro, and set severe measures for transformation to the euro and cooperation in the EMU. These prerequisites include yearly spending deficiencies not surpassing 3 percent of the Gross Domestic Product (GDP), open obligation under 60 percent of GDP, conversion standard strength, expansion rates inside 1.5 percent of the three most minimal swelling rates in the EU. Albeit a few states had open obligation proportions surpassing 60 percent, the rates beat 120 percent in Italy and Belgium.
Technical Analysis For EURHKD
EURHKD is a cross-currency combination in which the euro is the reference currency, while the currency cited is the Hong Kong dollar. This trade instrument’s volatility is above average. One can trade EUR/HKD with an integrated approach to the pair’s analysis, receiving a high profit in a short time. Despite the US dollar’s direct absence in this quote, its influence on the currency pair is much. Thus, in carrying out a fundamental study of EURKHD and the economic statistics of the European Union and Hong Kong, the key indicators of the US economy should be taken into consideration. The discount rate, GDP and inflation results, labour market measures (unemployment rate, new employment).
Fundamental Analysis For EURHKD
The pair’s main reference point is 9,9267. If EUR/HKD fails to cross the first point of resistance at 9,9524, it is expected to proceed until 9,9980 checks. If the second main resistance is broken, it is possible the pair will attempt to advance to 10.0238. If EUR HKD fails to break the first main support at 9.8812, it is likely to slide and check 9.8554 again. With this second primary support weakened, the downside drop is likely to go on to 9,8099. The central pivot point is at 9.9855, in weekly terms. The three key levels of resistance are: R1 – 10.0302, R2 – 10.1165, R3 – 10.1612. The three key levels of support are: S1 – 9.8992, S2 – 9.8545, S3 – 9.7682.
Understanding the EUR/HKD Pair
EURHKD is an abbreviation. Against the Hong Kong dollar for the euro region. It is classified as an exotic currency pair with generally high volatility and low volume of trading. The EUR is the base currency here, and the HKD is the quota currency there.
How to Trade the EUR/HKD Pair
Exotic currency pairs appear to be volatile and low. And commerce at these times isn’t perfect. The higher percentages portray higher trade costs. We can conclude that the costs are high when market volatility is high, and vice versa. When it comes to determining the right time to enter the market, when market volatility is around the average volatility one can open positions. This method will ensure decent volatility, as well as low cost. Business orders tend to slippage, and instructions to restrict not. The placement of limit orders is also another means in which one can reduce their net exchange costs.
The Best time to trade EURHKD
The best time to trade this currency pair is between 1:30 a.m and 8:30 a.m.
Certain forex pairs are ‘best’ to trade than others. Some have a great deal of directional movement. Some have a lot of volatility but stay unchanged over a period of time. Some react to news of high impact, others remain calm. Which pairs are appropriate for trading, depends on the strategy and risk aversion of each trader. There is no proper answer to that. Single trader has to find a custom solution. In choosing the best currency to trade, the main factors to consider are volatility, spread, trading strategy and its predictability.
Today’s Best EUR/HKD brokers sell higher. Euro to the exchange rate for the Hong Kong Dollar increased from the previous day by 0% to 8,7240. EUR/HKD fell 0.37% or 0.032 (320 points) to 8.7262 during the last trading session. In 2008 year the highest EUR/HKD rate was 12, 1061 and in 1985 year the lowest rate was 5,2166. At December 2008, the topmost monthly gain was 10.1% and the greatest decrease was 10.62% at March 1991.