Benzinga  1 hr ago  Comment 
EUR/USD is trading higher Monday at 1.0887, up 0.016. Trading has been choppy as European traders wind down trading for the day. Market talk about U.S. economic data and the Federal Reserve meeting has kept trading active. Market chatter about...
Benzinga  3 hrs ago  Comment 
EUR/USD has moved up a little Monday and is trading steady on the session at 1.0859, down 0.0012. Trading has been choppy. Chatter about U.S. monetary policy and the Federal reserve meeting this week is constant and has led to some buying....
Benzinga  5 hrs ago  Comment 
EUR/USD is trading a little lower early Monday morning at 1.0827, down 0.0044. Trading has been choppy. Market talk about comments from a wide range of policy officials from a variety of countries regarding Greece has kept trading...
Benzinga  Apr 24  Comment 
EUR/USD has moved up as European traders wind down trading for the day on Friday. EUR/USD is trading at 1.0861, up 0.0048. Trading has been moistly higher and range-bound during U.S. forex trading. Market talk about next weeks Federal Reserve...
Benzinga  Apr 24  Comment 
Benzinga  Apr 24  Comment 
EUR/USD has moved down erasing gains from early Friday morning, trading at 1.0828, up 0.0015. Trading is choppy and some buyers have backed away. Chatter from the Eurogroup meeting continues. Over the weekend, the German Finance Minister...
Benzinga  Apr 24  Comment 
Benzinga  Apr 23  Comment 
EUR/USD is trading higher at 1.0844, up 0.0120. Trading is very active and firm near the highs of the session. Market chatter about Greece and Economic data as kept buyers active. Some chatter about sellers near 109.50 is making the rounds. ©...
Benzinga  Apr 23  Comment 
Benzinga  Apr 23  Comment 
EUR/USD has drifted down Thursday at 1.0755, up 0.0032. Trading is range-bound and off the highs of the session. Market chatter about Greece and data overnight has kept trading active. U.S. data later this morning is now in focus. Market talk...
Benzinga  Apr 23  Comment 
EUR/USD has moved higher Thursday morning at 1.0765, up 0.0041. Market chatter about Eurozone and Germany data overnight has kept trading active. Greece PM Alexis Tsipras and German Chancellor Angela Merkel are meeting today ahead of the ...
Benzinga  Apr 22  Comment 
EUR/USD is trading range-bound during late U.S. Forex trading Wednesday. Lots of chatter about Friday's Eurogroup meeting is beginning to make the rounds. EUR/USD is trading at 1.0742 ,up 0.0004. Market talk about Greece and its ability to...
Benzinga  Apr 22  Comment 
EUR/USD is trading range-bound has moved lower off the highs of the session. EUR/USD is trading at 1.0732 ,down 0.0005. Market chatter about German Consumer confidence due out on Thursday at 2:00 a.m. ET is making the rounds. Also Thursday,...
Benzinga  Apr 22  Comment 


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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