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 holds a tight range above 1.12. Economists at Scotiabank analyze the pair’s outlook. Support seen at 1.1180/00 EUR firmed and did not retrace last week’s highs in any significant way. Marginal new […]
With inflation receding faster in the US than Europe, economists at UBS expect the Dollar to weaken. More investors to seek yield in Europe rather than the US A key consequence of […]
EUR/USD pushes through 1.10. Economists at Scotiabank analyze the pair’s outlook. EUR/USD needs spread support for stronger advance Short-term EZ-US rate spreads narrowed last week, with the 2Y spread reaching -155 bps, supporting […]
UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest the next level to watch for EUR/USD is now at 1.1010 in the near term. Key Quotes 24-Hour View: Our view that […]
Economists at Scotiabank analyze EUR/USD outlook. Trend remains bullish Another hike remains likely this month, perhaps leaving the door open for a September move as well. Rates can only gradually decline, as well, […]
EUR/USD is currently stuck in a range. Economists at Société Générale analyze the pair’s outlook. More ECB than Fed tightening in H2 We expect more ECB than Fed tightening in H2, Fed easing […]
EUR/USD recovers from low 1.08s support. Economists at Scotiabank analyze the pair’s technical outlook. EUR/USD is forming a bullish reversal Short-term charts suggest a major rejection of the lower 1.08 area. Note that […]
EUR/USD traded on the soft side on Tuesday. Economists at ING analyze the pair’s outlook. Eyes on the doves The pair may struggle to find clear direction ahead of the release of key […]
EUR/USD holds range above support in the low/ mid-1.08 range. Economists at Scotiabank analyze the pair’s technical outlook. Gains through 1.0910 resistance to provide renewed upside impetus for a retest of 1.10 Spot […]
Economists at Credit Suisse continue to look for EUR/USD to hold below retracement resistance at 1.0998 for a test of its uptrend from last September at 1.0778 EUR/USD is in the process of constructing […]
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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