Benzinga  Jan 22  Comment 
The euro is down 1.2 percent on Thursday. Forex markets are expected to choppy and at times erratic in the aftermath of the European Central Bank's decision to embark on quantitative easing. The EUR/USD is trading at 1.428, down 0.0184. Some...
Benzinga  Jan 22  Comment 
The March U.S. Dollar index is moving higher at 93.67, up 0.54. The EUR/USD is lower on the day at 1.14690. Some buying is seen near 1.1390 in the EUR/USD. Trading is choppy and weak in the EUR/USD. The AUD/USD is now lower on the session at...
Benzinga  Jan 22  Comment 
The euro is trading steady to higher Thursday morning. Chatter will be focused on the expected ECB policy news. EUR/USD is trading at 1.1622, up 0.0008. Some chatter about Russian concerns in Eastern Europe are showing up. Forex markets are...
Benzinga  Jan 21  Comment 
Chatter is coming out about the proposed size of the ECB bond buys. ECB is said to propose QE of 50 billion euro per month for one year. The euro has fluctuated a bit and has risen to 1.1665, about a 1 percent rise on the day. © 2015...
Benzinga  Jan 21  Comment 
Europe's euro is higher Wednesday against the U.S. dollar, but has fallen back quickly from the high; the EUR/USD pair is trading at 115.80 up, 0.0039. The pair was firming and has lost most of the day's gain. Forex trading has become erratic and...
Benzinga  Jan 21  Comment 
The EUR/USD pair is trading at 116.40, up 0.0089. The pair has firmed Wednesday morning ahead of the ECB meeting on Thursday. The USD/JPY is trading lower at 117.25, down 1.39. © 2015 Benzinga.com. Benzinga does not provide investment advice....
Benzinga  Jan 20  Comment 
The EUR/USD is trading at 115.59, down 0.0034, as Europe winds down trading for the day. Chatter about the ECB policy meeting this week persists. On Monday, Germany's Bundesbank warned that it will have to cut its inflation forecasts for 2015, as...
Benzinga  Jan 20  Comment 
EUR/USD is trading at 115.90, virtually unchanged from Monday. Germany's Economic Sentiment as measured by ZEW came in at 48.4 versus last month's 34.9 and better than chatter was expecting last week. The report was estimated to be 40. The...
Benzinga  Jan 16  Comment 
Europe's Euro Currency (EUR/USD) is trading at 115.93, down 0.0029; it surged in the past hour to nearly unchanged after setting new multi-year lows early Friday during European trading. The pair is well bid and trading active late in the session....
Benzinga  Jan 16  Comment 
March U.S. Dollar is trading at 93.31, up 0.0.70. Traders are chatting about the QE from the ECB; the weak EUR/USD is pushing the dollar higher. Last in, EUR/USD was at 1.1501, a new 12-month low. In other Forex markets: The USD/CAD is trading...


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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