QUOTE AND NEWS
SeekingAlpha  Sep 14  Comment 
By Cliff Wachtel: FX Traders' weekly EURUSD fundamental & technical outlook, and what makes this week potentially decisive for weeks to come. Summary Technical Outlook: Near term neutral, longer term bearish Fundamental Outlook...
TheStreet.com  Sep 8  Comment 
NEW YORK (TheStreet) EURUSD -- Euro/dollar sells off The EURUSD lost dramatic ground Thursday but stabilized into the week's close on Friday. However, the trend clearly remains bearish and so any push higher this week will be watched closely for...
SeekingAlpha  Sep 7  Comment 
By Cliff Wachtel: Did the EURUSD's surprise new stimulus, likely the last for 2014, signal an end to bad news for the EUR? FX Traders' weekly EURUSD fundamental & technical picture Technical Outlook (click to enlarge) ...
SeekingAlpha  Sep 4  Comment 
By QuandaryFX: The global economic environment is currently divided in the developed world. Presently the United States stands on the cusp of emerging from the longest recession since the Great Depression while European nations are in danger of...
Benzinga  Sep 3  Comment 
EUR/USD: Draghi is likely to disappoint tomorrow. EUR/USD: long at 1.3130, target 1.3270, stop-loss 1.3100 •PMI services fell to 53.1, well below July's 54.2 and preliminary estimate of 53.5. Output increased in four out of the five nations...
TheStreet.com  Sep 2  Comment 
NEW YORK (TheStreet) -- The euro/dollar downtrend continues. Over the last two months, the exchange rate of the EURUSD has falling significantly lower, and as the monthly chart below shows us, there are no signs this downtrend is coming to an end...
Forex News  Sep 2  Comment 
Euro is mixed today, dropping against the US dollar, even as it gains against the UK pound and Japanese yen. One of the reasons that the euro is struggling against the dollar is the speculation that the ECB will have to implement...
SeekingAlpha  Aug 31  Comment 
By Cliff Wachtel: FX Traders' weekly EURUSD fundamental & technical picture, likely trend, trading range, and drivers The following is a partial summary of the conclusions from the fxempire.com weekly analysts' meeting in which we cover...
SeekingAlpha  Aug 30  Comment 
By Evariste Lefeuvre: Is Europe turning Japanese? The combination of a huge current account, a deflationary spiral and a central bank stuck at the zero bound makes the eurozone look like Japan. Econ 101 would clearly call for a stronger currency...
Mondo Visione  Aug 28  Comment 
New specifications will come into force on 8 September for cash-settled EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CHF, USD/UAH, USD/RUB, and EUR/RUB futures. The specifications incorporate recommendations by Moscow Exchange"s Derivatives Market...




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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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