(International Business) USD/Euro relationship What do you believe is the future for the USD/Euro relationship, and what will be the impact on trade for the U.S. and Europe? Why so? Solution USD and Euro are the two most important and popular currencies in the international trade. The exchange rate between USD/Euro will be in a direction where the USD will appreciate against the Euro.With appreciation of the USD, the import to the USA will become cheaper and for Europe, the exports will flourish. Though, there are the impacts of the other currencies also such as British Pound. The currency relation with the relative appreciation of USD against Euro is established upon the following facts: 1. Recovery of the US economy and moving in a right direction of growth whereas some of the robust economies in European Union such as Germany, are being pulled back by the ailing nations such as Turkey 2. Lower level of unemployment in the USA (up to 4.1%) whereas it is a disturbing case in the European Union 3. Fed initiatives to increase the federal funds rate, an indicator that the economy has revived now. 4. The European Union still suffering from the BREXIT issue, negatively affecting the Euro 5. The initiative of America first by the Trump administration, cause more investment in the USA by the domestic MNCs Above reasons indication the trend of the future..