Identifying Currency Risk Factors for GlobalTech Corp

Easy Currency Management Currency Risk Factors

GlobalTech Corp, a U.S.-based technology company, conducts a significant amount of its business in Europe. As a result, it has substantial exposure to currency fluctuations between the U.S. dollar (USD) and the Euro (EUR). To better manage this currency risk, the finance team is evaluating several currency risk factors that could affect their operations.

Which of the following factors is MOST likely to have a direct impact on GlobalTech Corp's potential currency risk exposure?

The interest rate differential between the U.S. and European Central Bank.

The geopolitical stability of the European Union.

The overall movements in the stock market in the United States.

Hint

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