QUOTE AND NEWS
Benzinga  5 hrs ago  Comment 
EUR/USD is trading lower at 1.0632, down 0.0216. Trading has slowed down late in the session. Market chatter about German PPI due out at 3:00 .m. ET is beginning to make the rounds. Constant chatter and talk about ECB policy and Fed policy...
Benzinga  6 hrs ago  Comment 
The EUR/USD is trading lower at 1.0623, down 0.0225. The pair continues to decline and is accelerating downward. Talk about Greece once again has entered into the fray. Chatter about the Fed meeting is non-stop. Comments by global...
Benzinga  9 hrs ago  Comment 
EUR/USD is trading lower at 1.0647, down 0.0193. The pair has erased most of Wednesday's gains and trading is weak and accelerating downward. Talk about Greece once again has entered into the fray. © 2015 Benzinga.com. Benzinga does not provide...
Benzinga  12 hrs ago  Comment 
EUR/USD is trading lower at 1.0668, down 0.0180. Trading is active and weak with an extremely wide range. Market talk about the Fed is still fluid and chatter about Wednesday's wide trading range is making the rounds. Market talk about Greece...
Benzinga  Mar 18  Comment 
EUR/USD is trading higher at 1.0672, up 0.0080. The EUR/USD is trading active and firm with a wide range. The FOMC left monetary policy unchanged. The pair spiked up to 1.0735 and has since sold off to 1.0680. Forex traders are waiting for...
Benzinga  Mar 18  Comment 
EUR/USD is trading higher at 1.0609, up 0.0014. The FOMC concludes its March meeting today and no change in monetary policy is expected. Chatter is focused on the wording of the statement. The FOMC will give an update to the U.S. economic...
Benzinga  Mar 18  Comment 
Benzinga  Mar 17  Comment 
EUR/USD is trading higher at 1.0590, up 0.0019, but erasing gains from earlier in the session. U.S. monetary policy is now in focus. Chatter about comments by policy makers in Europe are making the rounds. © 2015 Benzinga.com. Benzinga does not...
Benzinga  Mar 17  Comment 
Benzinga  Mar 17  Comment 
EUR/USD is trading higher at 1.0616, up 0.0045. Market chatter about the Fed meeting, along with various appearances and comments by policy makers in Europe is making the rounds. German and Eurozone data was released overnight and had little...
Benzinga  Mar 16  Comment 
EUR/USD is trading firm at 1.0593, up 0.0103. Market chatter about the German and Eurozone ZEW data along with final EMU HICP data due out Tuesday is making the rounds. Market talk has a wide range of estimates for improvement in the ZEW data from...
Benzinga  Mar 16  Comment 
Benzinga  Mar 16  Comment 
Benzinga  Mar 13  Comment 
The EUR/USD has extended its losses Friday, trading at 1.0480, down 0.0148. Trading is weak and buyers have backed away. Some bids are seen near 1.0360 down to 1.0300. © 2015 Benzinga.com. Benzinga does not provide investment advice. All rights...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki