EUR/USD – Live and Historical Rates

The most significant currency pair in forex trading, the EUR/USD represents the amount of USD needed to purchase one EUR. The importance of this particular pair stems from the fact that the USD and the EUR are the first and second most-traded currencies as well as the first and second largest reserve currencies. Play around with the chart above by moving your mouse over the chart or changing the settings in the chart to get the view you need for your current analysis.

The Euro

Introduced in 1999, the Euro is the fruit of the most significant effort at creating a monetary union in the history of mankind and it is indeed an ongoing project. Initially replacing 12 national currencies, the Euro currently serves 21 European countries and some 327 million people. A number of other countries and smaller, dependant territories have also adopted the common currency, de-facto or based on special agreements. The EUR is currently the only challenger of the USD as the world’s top reserve currency. The entity controlling the EUR is the ECB (European Central Bank).

The US Dollar

The world’s top reserve currency, the US dollar dominates international trade on every level, to a massive extent. Controlled by the Federal Reserve (mainly through the lending of interest rates) the USD has been predicted to eventually cede its globally dominant position to the EUR. These predictions have thus far fallen well short of the mark as the US dollar is still by far the most traded currency in the world. The USD is supported by the mammoth US economy, with its massive energy, manufacturing, finance and agriculture sectors.

EURUSD Analysis

The EUR/USD pair is a popular choice for carries, given the relative stability of both currencies. The pair is negatively correlated with the USD/CHF pair (on account of the close correlation between EUR and CHF) and positively correlated with USD/GBP. EUR/USD rates are influenced by the interest-rate policies of the ECB and Fed, as well as by a myriad of economic factors on both sides of the Atlantic.

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