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 remains confined in a narrow trading band for the second straight day. The technical setup warrants some caution before placing fresh directional bets. Traders now look to the US CPI for […]
EUR/USD holds ground near 1.0770, up 0.06% on the day. The US labour market may convince the Federal Reserve (Fed) to delay rate cuts in 2024. The market expected the European Central […]
EUR/USD rebounded from its three-week low at 1.0723. ECB is expected to keep the Main Refinancing Operations Rate unchanged at 4.5% in its upcoming meeting. Fed may maintain interest rates at 5.5% […]
EUR/USD declines over 0.20%, hits daily low of 1.0723 post-US Nonfarm Payrolls; trims losses to 1.0767 after upbeat UoM Consumer Sentiment. US Bureau of Labor Statistics reveals a resilient job market, adding […]
The EUR/USD spikes down after better-than expected US payrolls data. Nonfarm payrrolls and hourly earnighs increase bayond expectatios in November. US data cools holes of Fed cuts and sends the USD higher. […]
The Euro extends losses after weak German factory orders Sluggish Eurozone data increases hopes of ECB rate cuts on early 2024 The EUR/USD approaches an important support area at 1.0750. The Euro remains […]
EUR/USD attracts some buyers amid the risk-on mood. ADP private payrolls came in worse than expected, rising 103K in November vs. 106K prior. Eurozone Retail Sales rose 0.1% MoM in October vs […]
– EUR/USD loses further momentum and challenges 1.0800. – Extra declines look likely once 1.0800 is cleared. EUR/USD retreated further and tested 1.0800 support on Tuesday. A drop below the latter would […]
EUR/USD attracts some sellers under the 1.0900 psychological mark on Monday. The bullish outlook of EUR/USD looks vulnerable; RSI indicator stands below the 50.0 midline. The 1.0900–1.0910 zone acts as an immediate […]
EUR/USD declined below the 1.09 mark. Economists at Société Générale analyze the pair’s outlook. The pace of EUR/USD appreciation should be gradual The 10Y Bund fell to 2.395%, extending the correction from 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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