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Select two major currencies from the past year. What are sim

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Select two major currencies from the past year. What are similarities and differences between them? What have been drivers of each currency's performance? How do interest rate movements affect the overall value of currencies? (at least 200 word).

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Solution Summary

The solution provides detailed explanations for the problem based on performance of the EUR and AUD.

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I'm selecting EUR and AUD. Have a look at their performance:

http://finance.yahoo.com/echarts?s=EURUSD=X#chart2:symbol=eurusd=x;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

For the EUR, in the past year, it has gone through quite some major fluctuations. Overall, they have decreased the spot rate of EUR:USD from 1.49 to 1.43. At the lowest point in November and March period, the spot rate went down as low as 1.25.

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