EUR/USD

Euro (EUR) to United States dollar (USD) exchange rate.

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Product Type: CurrenciesMarket: Global
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Description:

EUR/USD is the most commonly-traded currency pair in the foreign exchange market, with an average daily trading volume of close to $600 billion - equivalent to 37% of total market activity. Its vast popularity and constantly high liquidity are attributed to the fact that both its base and quote currencies – the euro and the United States (US) dollar – are by far the most actively-traded currencies in the world. Aside from being the single currency of 19 European Union (EU) members, the euro has in a relativity short period of time become the closest contender to the US dollar’s long-lasting reign as the world’s primary exchange currency. As for the US dollar, the economic strength of the United States and the international sovereignty of its trading bloc are indisputable. Close to 90% of all foreign-exchange transactions and over two-thirds of foreign exchange reserves are denominated in US dollars. All in all, the supremacy of the EUR/USD currency pair is solid and likely to persist well into the future.

Interesting Facts:

  • The US dollar is the most traded currency in the world, with the euro following close behind.
  • Both American and European economies receive wide media coverage, making it easy to understand and track the major events and economic indicators influencing the euro/US dollar relationship.
  • International banks, securities firms and leading insurance companies are all major buyers and sellers of the EUR/USD currency pair. As such, it is highly liquid and trades heavily, around the globe, around the clock.
  • EUR/USD also provides a relatively high level of volatility, meaning greater profit potential over a short period of time.
  • Many multi-million dollar, world-reaching companies conduct business in both the USA and EU, and therefore have a constant need to hedge their funds in order to protect themselves from expected or unexpected changes in the markets. This further contributes to the EUR/USD’s long standing popularity.

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