Carta: EURHKD

EUR/HKD, which is the cross rate against the U.S. dollar, is not a very popular currency pair on Forex market. There is no U.S. dollar in this currency pair, but the euro and the Hong Kong dollar are under its great influence. To make it clear, just combine the EUR/USD and USD/HKD charts in the same price chart, and you will get the approximate EUR/HKD chart.

The U.S. dollar exercises the profound influence on both currencies. So for a better prediction of the future rate movement of this currency pair, you need to consider the main economic indicators of the economy of the United States. There are such indicators as the interest rate, GDP, unemployment, new workplaces indicator and many others. Remember that the currencies listed above can react differently to the economic situation in the U.S.A.

Hong Kong has one of the largest stock exchanges in the world. Thanks to some factors, Hong Kong leaves behind the number of the major European and American stock exchanges. Today the Hong Kong Stock Exchange is regarded as a leader among the financial centers all over the world.

Hong Kong's economy is characterized by the free trade, low tax rates, and the government policy of the non-interference in the state economy. The country's economy is heavily dependent on the import due to the Hong Kong's shortage of mineral and food resources. The state revenue is provided by the service sector, reexport from China, as well as developed tourism.

In comparison with the major currency pairs such as EUR/USD, USD/CHF, GBP/USD and USD/JPY, this one is relatively illiquid. So when you predict the future movement of this currency pair, you should pay special attention to the currency pairs that consist of the euro and the Hong Kong dollar in tandem with the U.S. dollar.

Please note, that the spread for cross rates is usually higher than for more popular currency pairs. Therefore, before you start dealing with this currency pair, learn carefully the broker's conditions for this specified trade instrument.