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 consolidates in the mid-1.06 area. Economists at Scotiabank analyze the pair’s outlook. Bullish reversal pattern developing Intraday price signals indicate the EUR may have based, with a bullish reversal pattern developing on […]
– EUR/USD accelerates its losses to weekly lows near 1.0660. – The next support of note emerges at 1.0650 ahead of 1.0500. EUR/USD retreated further and reached the temporary 55-day SMA near […]
EUR/USD could revisit the eight-week high at 1.0756. Euro could gain ground as the MACD line shows divergence above the signal line. A break below the psychological support at 1.0700 could push […]
EUR/USD fluctuates above 1.06. Economists at ING analyze the pair’s outlook. The market has closed the door on further ECB hikes The European Central Bank’s Isabelle Schnabel said the ECB cannot close the door […]
EUR/USD could revisit the previous week’s low at 1.0521 due to facing pressure. Any dovish remarks post-Fed decision could uplift the pair toward a 23.6% Fibonacci retracement level at 1.0648. RSI indicates […]
– EUR/USD regains the smile and briefly surpasses the 1.0600 barrier. – Once the 1.0700 region is cleared, the pair’s selling bias could alleviate somewhat. EUR/USD showed some buying interest and crossed […]
EUR/USD hovers around 1.0565 amid the USD weakness, lower US bond yield. The pair holds below the 100- and 200-hour EMAs; the RSI indicator is located in bearish territory under 50. The […]
Economists at ING anlayze EUR/USD outlook ahead of today’s ECB meeting. Room for a hawkish surprise The ECB announced policy today, and we expect both a hold and an attempt to shift the focus from rate-based guidance […]
NZD/USD maintains a position above 0.5850 despite the upbeat US Dollar. Israel’s delay in the ground assault plan in Gaza contributes support to the risk-on sentiment. China’s updates appear to be influencing […]
EUR/USD abandons the area of monthly highs near 1.0700. The 1.0700 zone appears reinforced by the 55-day SMA. EUR/USD has sparked a meaningful corrective decline after hitting a monthly high just below […]
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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