EUR/USD Forex Trading
EUR/USD Live Charts
Use our EUR to USD chart to get the most up-to-date insight into the recent performance of this pair and other currency pairs used in forex trading. It can help you make informed decisions at home or on the go – no matter if you use the TickTrader desktop platform, web terminal, or mobile app. Our real-time chart includes the very latest prices, historical data, and technical analysis tools to help guide your next trade.
What Is EUR/USD Trading?
The EUR/USD trading pair involves the euro, the official currency of the Eurozone, and the United States dollar, the world's primary reserve currency. It represents the exchange rate between these two currencies, meaning how many US dollars are needed to purchase one euro or how many dollars you will receive if you convert 1 EUR to USD. For instance, if the rate is 1.20, it means that one euro can be exchanged for 1.20 US dollars.
The EUR/USD pair is renowned for its liquidity and significant trading volume. It is the most traded currency pair globally. This popularity potentially ensures that traders can open and close trades even in times of increased market volatility.
Moreover, FXOpen offers spreads from 0.0 pips and ultra-fast trade execution.
EUR/USD Historical Performance
These are the most important price fluctuations in the EUR/USD pair since 2010.
The early years of the decade were marked by the Eurozone debt crisis, which significantly influenced EUR/USD trading. As concerns about the solvency of several Eurozone member states grew, the euro faced downward pressure. EUR/USD traded within a wide range, from around 1.45 in 2010 to lows near 1.05 in 2015.
The divergence in monetary policies between the European Central Bank and the US Federal Reserve became a driving force. While the Fed raised interest rates, the ECB adopted a dovish stance, leading to a stronger USD and a lower EUR/USD rate. Additionally, the Brexit referendum in 2016 introduced further uncertainty, causing fluctuations in the pair. In 2015-2016, the pair traded within a narrow range of 1.05-1.15.
The euro saw a resurgence in 2017 as economic data improved in the Eurozone, leading to expectations of tighter monetary policy. It climbed from around 1.05 to 1.25 during this period; however, USD quickly recovered, which weighed on the pair.
The outbreak of the COVID-19 pandemic in early 2020 brought unprecedented market turmoil. As risk aversion gripped investors, USD surged, causing EUR/USD to briefly dip below 1.08. After an upside correction, the pair continued moving in a strong downtrend. A significant plunge occurred in autumn 2022 when the rate of 1 EUR to USD fell below 1. The pair quickly recovered, but downward pressure continued weighting on it.
Major Factors That Affect the EUR/USD Rate
Central bank policies, particularly those of the European Central Bank (ECB) and the Federal Reserve (Fed), influence interest rates and, consequently, the EUR/USD rate. Usually, currencies with higher rates are more attractive for investors; therefore, rate hikes lead to an appreciation of a domestic currency.
Economic indicators like GDP growth, employment figures, and inflation rates impact the relative strength of the Eurozone and the United States, leading to fluctuations in the exchange rate.
Elections, trade agreements, and geopolitical events can introduce uncertainty into the market, affecting trader sentiment.
The collective sentiment of traders, often influenced by news and events, can drive short-term price movements.
EUR/USD can exhibit correlations with risk assets. During risk-on sentiment, traders may favour higher-yielding currencies like the euro, while risk-off sentiment may drive them toward the safety of the US dollar.
