This Currency Pair EUR/USD is the short form to describe the Euro compared to the U.S. dollars pair or cross between the currency of the European Union (EU) and the United States (USD). The currency pair identifies how many U.S. dollars (the quote currency) are required to purchase 1 euro (the base currency). Read More
EUR/USD slips to retest upper 1.08s. Economists at Scotiabank analyze the pair’s outlook. EUR/USD should continue to pressure the upper 1.08s in the short run Bearish trend momentum is picking up on the […]
EUR/USD holds positive ground above the mid-1.0900s amid the USD weakness. European Central Bank (ECB) officials emphasized the need to wait for more data before making decisions on rate normalization. The US […]
The World Economic Forum in Davos kicks off Monday. Economists at ING analyze EUR/USD outlook ahead of ECB President Christine Lagarde’s remarks. Lagarde may sound more hawkish in Davos While ECB hawks’ protests against […]
EUR/USD drifts lower. Economists at Scotiabank analyze the pair’s outlook. Technicals point to more softness ahead EUR/USD looks vulnerable to renewed softness in the near term if or when markets begin to […]
EUR/USD falls sharply below 1.0950 on deepening geopolitical tensions. Fears of widening conflicts in Middle East region have improved the safe-haven appeal. The ECB is not required to raise interest rates […]
EUR/USD attracts some buyers amid the USD softness. ECB’s de Cos said risks to economic growth remain skewed to the downside. The markets anticipate the Fed to begin cutting rates as early […]
EUR/USD gains upward traction as the US Dollar declines on improved risk appetite. The breakthrough above the barrier at 1.1000 could lead the pair to revisit the previous week’s high at 1.1038. […]
Dollar has started 2024 on the front foot. Economists at Rabobank analyze EUR/USD outlook for the coming months. EUR to perform poorly in the months ahead Despite this year’s adjustment in market […]
EUR/USD drifts back to low 1.09s. Economists at Scotiabank analyze the pair’s outlook. The short-term trend remains lower The EUR is carving out a broad consolidation range on the chart following the […]
EUR/USD trades on a softer note amid the stronger USD. The pair keeps the negative outlook unchanged below the key EMA; RSI indicator stands in bearish territory below the 50 midline. The […]
What is the Currency Pair What is the Currency Pair: EUR/USD (Euro/U.S. Dollar)?
This Currency The EUR/USD pair is the abbreviated name of the euro compared to the U.S. dollar pair, or cross between both the currency of the European Union (EU) and the United States (USD). The currency pair indicates the amount of U.S. dollars (the quote currency) are required to buy 1 euro (the basis currency). The EUR/USD currency pairing is often referred to by trading "euro." The EUR/USD currency pair price is reported as 1 euro per U.S. dollar. For instance, if it is traded at 1.50, it will take 1.5 U.S. dollars to buy one euro.
The basics of currency Pair: EUR/USD (Euro/U.S. Dollar)
The EUR/USD currency pair is the most traded worldwide since it mixes the two largest economies around the globe. It is influenced by various factors that affect its value or the U.S. dollar concerning one another and other currencies. Because of this, the difference in interest rates among the European Central Bank (ECB) and the Federal Reserve (Fed) affects the value of these currencies they are compared.
In particular, if it is the case that the Fed is involved in market operations to increase the value of more U.S. dollars stronger, the value of the EUR/USD exchange may decline as a result of an increase in the value of that U.S. dollar compared to the euro. Similar to this, negative news regarding the EU economy could harm the prices of the EUR/USD currency pair. The news about the state debt crisis and the flood of immigrants across Italy and Greece led to a Euro selling, causing the exchange rate to plummet.
A Brief History of the Euro Currency
ehat introduced the Euro currency in 1992 due to the Maastricht Treaty. It was initially created as an accounting currency the year 1999. The euro was introduced on Jan. 1st, 2002. The euro was introduced to circulation within the member states of the EU, and, in the span of a few years, it was the official currency of the European Union and ultimately replaced the currencies of several countries that are members of the EU.
The euro is integrated and is the currency of a significant portion of European economies. This helps stabilize the exchange rate of currencies and reduce the volatility of all countries in the European Union. This also makes the euro among the top frequently traded currencies on the forex market, just behind the U.S. dollar.
As of March 26th, 2018, 19 of the member states in the European Union use the euro. As per the ECB, at the time of January 1st, 2017, more than EUR1 trillion were being circulated throughout the world.
The reading of a price chart for EUR/USD
Contrary to a price graph for an individual stock, the price indicated is directly an actual price for this stock. The price shown on a price chart of an exchange rate pair is the conversion rate for the currency pair. The directional indication is that of the currency used as the basis.
In the previous instance, traders took an extended position in the currency EUR/USD at 1.50. When the rate rises to 1.70, then the euro rises in strength (as shown by the graph of price) as well as in turn, the U.S. dollar weakens. It now takes $1.70 (more than dollars) to buy the same euro, making the dollar weaker and stronger.
But, it is essential to realize that the currency that is the basis of each pair of currencies is always fixed. It is one unit. So, the cause of the strength or weakness is not evident in the price. The EUR/USD exchange rate may rise because the euro is becoming stronger or the U.S. dollar is getting weaker. The result is an upward trend within the price (price) and an upwards movement on the price chart.
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