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
Last week’s late bounce in EUR/USD looks to have petered out above 1.06. Economists at ING analyze the pair’s outlook. EUR/USD to stay lower for a little longer EUR/USD is set to stay […]
EUR/USD gathers further impulse and surpasses 1.0600. The immediate target for bulls emerges at the 1.0770 region. EUR/USD regained its composure and extended the recovery by crossing the key barrier at 1.0600 […]
Further decline could see EUR/USD slip back to the 1.0430 region in the near term, according to Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group. Key Quotes 24-Hour […]
EUR/USD attempts to stay above the 1.0500 psychological level. Momentum indicators suggest a potential bearish sentiment in the market. The region around January’s low could act as a key support. EUR/USD attempts […]
EUR/USD drops to new multi-month lows around 1.0570. Extra losses could extend to the March low near 1.0515. EUR/USD maintained bearish pressure well and printed a new six-month low in the 1.0570/65 […]
EUR/GBP closed Thursday at 0.8670, up by 0.20%, hitting a daily high of 0.8695 near the 200-day SMA. The daily and four-hour chart flashes bullish signals. The 20-day SMA and 100-day SMA […]
EUR/USD clinches new six-month lows near 1.0610. Further decline opens the door to a drop to the 1.0515 zone. EUR/USD keeps the negative price action well in place and retreats to fresh multi-month […]
EUR/USD losses continue to coalesce around the low 1.06 support zone. Economists at Scotiabank analyze the pair’s outlook. Support in low 1.06 area remains solid EUR is weak but, now under it’s 10-week streak […]
The ECB raised its key policy rate by 25 bps to a record high of 4% in September, while consensus was fairly evenly split. The EUR failed to make any notable gains, […]
EUR/USD consolidates below 1.07. Economists at Scotiabank analyze the pair’s outlook. A clear push under 1.06 would pave the way for losses towards 1.04 EUR struggles to extend gains above 1.07. The broader price […]
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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