QUOTE AND NEWS
Benzinga  4 hrs ago  Comment 
The EUR/USD has slipped in late trading, last at 1.1394, down 0.0068. Chatter by ECB officials that they cannot assume a successful conclusion to the Greek Debt Program review has caused some selling to some in. The pair is trading weak and...
Benzinga  10 hrs ago  Comment 
The EUR/USD pair is trading 1.1408 and is showing weakness into the last hour of the European trading session. The USD/CAD is higher at 1.2521, up 0.0076. The U.S. dollar against the Chinese yuan (USD/CNY) is steady at 6.2462. © 2015...
Benzinga  Feb 4  Comment 
Benzinga  11 hrs ago  Comment 
The EUR/USD pair is trading at 1.1448. ADP data was pretty much as expected. Market talk is that even though the Greece news is still talked about, its mostly political posturing. European Council President Donald Tusk said negotiations over...
Benzinga  Feb 3  Comment 
The euro is trading higher as Europe winds down trading for the day. The pair is trading at 1.1445, near the highs of the session. Better Greece news and market talk that U.S. data was soft continues. Chatter about meetings between Greece policy...
Benzinga  Feb 2  Comment 
The EUR/USD pair is trading higher Monday at 1.1336, up 0.0046. Chatter by ECB officials that ECB bond buying will begin in March, some better Greece news over the weekend was supportive. Market talk that U.S. data was soft has brought in...
Benzinga  Jan 30  Comment 
The euro moved lower Friday as Forex traders in Europe wind down trading for the month. The pair is active and is range-bound; last in, the EUR/USD is at 1.1283, down 0.0053. Chatter remains about the ECB QE and comments by U.S. Fed officials are...
Benzinga  Jan 30  Comment 
Benzinga  Jan 30  Comment 
The euro is trading lower ahead of U.S. data at 08:30 a.m. ET. The EUR/USD trading at 1.1304, down 0.0027. Market chatter about rising Ukraine tensions and Greece are still around. The ECB chatter continues. The GBP/USD is trading lower at...
Benzinga  Jan 29  Comment 
The EUR/USD is slightly higher after a back and forth trading day, trading at 1.1309, up 0.0026. Forex trading has been volatile. The range for the EUR/USD has been smaller. The AUD/USD set new 12-month lows Thursday after plunging most of the...




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The EUR/USD currency pair specifies how many U.S. Dollars are needed to purchase 1 Euro. In other words, the value of this currency pair is quoted as 1 Euro per x U.S. Dollars.

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

February 2010

Those who actively trade forex know that both the Euro and the U.S. Dollar have come under pressure lately for various reasons. In the case of the Euro, its weakness arises from sovereign debt concerns centered on Greece which have benefited the Dollar.

Nevertheless, the Greenback has suffered because of record budget deficits, two wars, massive unemployment and a sub-prime mortgage real estate disaster. The European Union also faces a considerable amount of economic pressure, having achieved almost no growth during 2009 and also suffering from very high unemployment levels beyond 10%. The current tug-of-war between the Euro and the Greenback seems to fluctuate depending on whether forex traders are more concerned with some of the Eurozone member nations having sovereign debt problems, or with the precarious economic recovery in the United States. As of this writing, the Greenback seems to be winning, especially after a recent surprise move by the Federal Reserve to tighten the Discount rate by 25 bps to 0.75%.

Also, the United States economic numbers have been slowly improving, with consumer spending showing improvement in January, rising by 0.5% from the previous month with November and December’s figures also adjusted upwards. In addition, U.S. GDP is now expected to surpass 3.5% this year, and Core Retail Sales rose by almost 6% annually for the last six months. The U.S. stock market has also maintained a surprisingly resilient level above 10,000, despite many corporations having difficulty turning a profit.

Nevertheless, although the United States is mired in debt with a budget deficit over a trillion dollars this year, and more than that foreseen for next year, the fact that the trade deficit rose to $40.2 billion in December, up from $36.4 billion in November, confirms that the economic expansion, although gradual, is now under way. The Federal Reserve is also expected to begin tightening interest rates further if economic numbers keep improving.

The European Union, on the other hand, has some extremely sensitive issues surrounding the debt of its member nations Greece, Ireland, Portugal and Spain, who all have now had their debt downgraded by S&P and other credit rating agencies. Despite numerous efforts from other Eurozone countries like France and Germany, who have both pledged to bail out Greece, a clear solution to the sovereign debt problems of these member states has still not been worked out.

The EUR/USD currency pair has also seen an impressive amount of volatility since the beginning of the year, with the Euro now down more than 2% against the Greenback on the year and still making new yearly lows within its recent decline. The rate appears to be stabilizing, however, as the Dollar begins to show signs of consolidation.

Furthermore, with commodities such as gold and oil trending higher, both currencies stand to fall under some pressure as net importers. Still, the U.S. Dollar seems to be benefiting from better-than-expected economic numbers, and despite China liquidating over $34.2 billion of their U.S. Government-backed securities in December, the Dollar seems to be weathering that particular storm rather well.

Which currency will end the year stronger is still anybody’s guess. Nevertheless, if the European Union’s sovereign debt problems fail to get resolved, the U.S. Dollar may appreciate more, especially given the Federal Reserve’s recent surprise move.

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