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 can’t sustain the move above the 1.0800 mark. Extra losses could drag the pair to the 1.0760 region. EUR/USD fades the initial bullish attempt to the area above 1.0800 the figure on […]
Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest EUR/USD could slip back to the 1.0730 region in the near term. Key Quotes 24-Hour View: We highlighted last Friday that […]
EUR/USD reverses two consecutive sessions of losses. The resumption of the selling pressure could see 1.0765 retested. EUR/USD manages to regain some balance and reclaims the 1.0800 neighborhood at the beginning of […]
EUR’s rebound from 200-Day Moving Average test fails to develop. Economists at Scotiabank analyze the pair’s technical outlook. There is solid support for the EUR at 1.08 EUR’s seemingly strong rejection of the […]
EUR/USD resumes the downtrend and re-visits the 1.0810 area. Firm contention remains at the 200-day SMA at 1.0800. EUR/USD quickly forgot Wednesday’s highs and resumed the downtrend with immediate targets near recent […]
Economists at ING expect the EUR/USD pair to remain below the 1.09 level. EUR/USD will struggle to make it back above the 100-DMA at 1.0930 EUR/USD may drop below 1.09 and support below 1.0835/1.0845 […]
Economists at ABN Amro expect the EUR/USD pair to move downward over the coming months. Speculative positions in the EUR are extremely large We forecast a modest upside for the US Dollar versus the […]
EUR/USD gains modestly. Economists at Scotiabank analyze the pair’s outlook. Short-term price signals are tilting somewhat positive Short-term price signals are trending slightly positive but it remains to be seen whether the […]
EUR/USD steadies in the upper 1.08s. Economists at Scotiabank analyze the pair’s outlook. Support is 1.0835, Resistance is 1.0920 Short-term trend momentum has completely flattened as EUR/USD settled in the 1.0850-1.0900 trading […]
Economists at Nordea expect the EUR/USD pair to lose ground toward 1.07 before bouncing back higher. USD hurt by soft landing outlook Inflation hurt the US dollar as US interest rate expectations lean towards […]
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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