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 hits 18-week high on Friday. Pre-holiday markets are producing some rough chop heading towards the Friday close. Slowing US inflation is pushing down the Greenback as markets bet on rate cuts. […]
EUR/USD retreats from a three-week high at 1.1012. A breakthrough above the 1.1000 level could lead the pair to test a two-month high at 1.1017. 1.0950 major level could act as a […]
EUR/USD is drifting back somewhat after gains stalled just under 1.10 on Tuesday. Economists at Scotiabank analyze the pair’s outlook. Scope for losses is limited Market bets are – currently – that the […]
EUR/USD currently trades near 1.0920, adding 0.01% on the day. German business expectations and current conditions unexpectedly worsened in December. The markets believe the Fed is done with the hiking cycle, and […]
EUR/USD extends its gains ahead of inflation data from the Eurozone. Technical indicators suggest positive sentiment to aim for the significant level at 1.1050. 1.0900 acts as key support followed by the […]
EUR/USD consolidates around the 1.09 area. Economists at Scotiabank analyze the pair’s outlook. EUR/USD liable to remain well-supported on moderate dips A period of consolidation is likely for the EUR but spot is […]
EUR/USD continues to draw support from the divergent ECB-Fed policy outlook. The technical setup favours bullish traders and supports prospects for further gains. Some follow-through buying beyond the 1.1015 area will reaffirm […]
EUR/USD holds below 1.0800 on a modest US Dollar strength. US Consumer Price Index (CPI) report broadly matched market expectations. German ZEW Indicator of Economic Sentiment came in at 12.8 vs. 9.8 […]
EUR/USD halts its two-day winning streak ahead of monetary decisions from both economies. Technical indicators suggest a potential revisit to the weekly low at 1.0741. A breakthrough above the 1.0800 level could […]
The Euro trims losses as the US Dollar pulls back ahead of the US CPI release US Inflation and the Fed decision will set the Dollar’s near-term direction. EUR/USD’s immediate trend remains […]
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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