What is the correlation between EUR/USD forward rates and digital currency prices?

1 answers

• May 05, 2022 · 3 years ago
  At BYDFi, we believe that the correlation between EUR/USD forward rates and digital currency prices can be significant. As the forward rates of EUR/USD reflect the market's expectations for the future exchange rate, they can impact investor sentiment and risk appetite. When forward rates indicate a stronger Euro, it may attract more investors to digital currencies, leading to increased demand and potentially higher prices. Conversely, if forward rates suggest a weaker Euro, it might dampen investor enthusiasm for digital currencies. However, it's important to note that the correlation between these two factors is not always consistent and can vary depending on market conditions and other external factors.
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