Some facts about FOREX
One of the factors are identified as fundamental determinants of the real euro to US dollar exchange rate is relative prices in the traded and non-traded goods sectors.
Long-term US government bonds are considered to be a risk-free investment since there is virtually no chance of default - i.e. the US government is not likely to go bankrupt, or be unable or unwilling to pay its debts.
Member countries of the European Union's Economic and Monetary Union have ceded control of monetary policy to the European Central Bank.