EUR/USD

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    EUR/USD is a currency pair consisting of the euro and the US dollar. It is the most actively traded of all pairs.

    The price of EUR/USD shows how many US dollars (the quote currency) it costs to purchase one euro (the base currency).

    EUR/USD Trading

    Trading a currency pair such as EUR/USD is called currency trading or forex trading. If you are new to trading, we recommend our forex beginner strategy as a starting point:

    Forex trading beginner strategy

    “The euro” is one of the seven major currency pairs that contain the US dollar and is the most traded pair on the forex market. It is considered to be the most important and also the most liquid of all currency pairs because the euro is the 2nd most important reserve currency globally (the US dollar is the first), as well as the 2nd most traded currency on the forex markets.

    As currency pairs are affected by external factors that influence an individual currency value, the EUR/USD will fluctuate according to the difference in interest rates set by the European Central Bank (ECB) and the Federal Reserve (Fed). For example, any intervention by the ECB in the markets aimed at strengthening the euro would be likely to see a rise in the value of the EUR/USD. Conversely, if the Fed takes action to strengthen the dollar by intervening in the markets, the value of the EUR/USD would be likely to fall.

    EUR/USD is usually negatively correlated to the USD/CHF, often called “Swissy”. However, it enjoys a positive correlation to the GBP/USD, called the “Cable” – because the euro, Swiss franc and British pound are all positively correlated with each other.

    To learn more about the economic impact on currency pairs, visit:

    Currency correlation