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
So far in August, EUR/USD has struggled to sustain levels over 1.1000. Economists at MUFG Bank analyze the pair’s outlook. Possible quiet trading conditions over the coming few weeks Resilience in US […]
Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest EUR/USD could ace some consolidation in the near term. Key Quotes 24-Hour View: The strong bounce that sent the EUR to […]
The softer headline US employment figure provided something of a reprieve to EUR/USD on Friday. Economists at ING expect the pair to hold 1.0920 – the 100-Day Moving Average. 100-DMA seems to be holding […]
Economists at Société Générale analyze EUR/USD outlook. 200-WMA at 1.1184 should cap upside in the near term August seasonality was negative in four of the last five years. The negative seasonality cannot be […]
In the opinion of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, the idea of further weakness in EUR/USD seems to be losing the grip for […]
EUR/USD limps back below 1.10. Economists at ING analyze the pair’s outlook. Markets too dovish? The door is open for another hike by the ECB before the end of the year, even in September. […]
EUR/USD is consolidating above 1.10. Economists at Scotiabank analyze the pair’s outlook. Support is seen at 1.1010/15 Short-term trading patterns lean slightly more EUR-bullish while modest gains through European trade pushed a […]
EUR/USD progresses ahead of ECB. Economists at Scotiabank analyze the shared currency outlook. More progress is required to bolster the short-term outlook Solid gains from this week’s lows came in to revive the […]
Economists at Scotiabank analyze EUR/USD technical outlook. There is little sign of the move lower reversing at this point Price action looks soft and there is little sign of the move lower […]
Economists at Société Générale note two important things needed to propel EUR/USD into a 1.15-1.20 range. The Euro needs more growth US economists kept their forecasts for 2023 GDP growth unchanged, as was 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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