Currency Pair: EUR/USD (Euro/U.S. Dollar)

Dictionary Says

Definition of 'Currency Pair: EUR/USD (Euro/U.S. Dollar) '

The abbreviation for the euro and U.S. dollar (EUR/USD) pair or cross for the currencies of the European Union (EU) and the United States (USD). The currency pair tells the reader how many U.S. dollars (the quote currency) are needed to purchase one euro (the base currency).

Trading the EUR/USD currency pair is also known as trading the "euro".
Investopedia Says

Investopedia explains 'Currency Pair: EUR/USD (Euro/U.S. Dollar) '

The value of the EUR/USD pair is quoted as 1 euro per x U.S. dollars. For example, if the pair is trading at 1.50 it means that it takes 1.5 U.S. dollars to buy 1 euro.

The EUR/USD is affected by factors that influence the value of the euro and/or the U.S. dollar in relation to each other and to other currencies. For this reason, the interest rate differential between the European Central Bank (ECB) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the EUR/USD cross could decline, due to a strengthening of the U.S. dollar compared to the euro.

The EUR/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the GBP/USD currency pairs. This is due to the positive correlation of the euro, the Swiss franc and the British pound.

Related Video for 'Currency Pair: EUR/USD (Euro/U.S. Dollar) '

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. USD

    In currencies, ...
  2. Currency Pairs

    Two currencies ...
  3. Quote Currency

    The second ...
  4. Base Currency

    The first ...
  5. Forex Spot Rate

    The current ...
  6. Real Time Forex Trading

    A form of ...
  7. Pip

    The smallest ...
  8. Currency

    A generally ...
  9. Electronic Currency Trading

    A method of ...
  10. Euro

    The official ...

Articles Of Interest

  1. Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  2. What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  3. What's the relationship between a country's currency and the strength of its economy?

  4. How To Become A Successful Part-Time Forex Trader

    Getting started in this potentially profitable market is easier than you might think.
  5. Trade Forex With FXTrader

    Open up the big bad world of forex trading by virtually trading 10 of the most popular currency pairs on our NEW forex trading simulator.
  6. A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  7. Forex: Wading Into The Currency Market

    We go over the ground rules and available resources needed for this undertaking.
  8. Understanding Forex Rollover Credits And Debits

    Forex trades are subject to receiving interest or being debited interest if positions are held overnight.
  9. 6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  10. Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center