QUOTE AND NEWS
TheStreet.com  Jul 31  Comment 
EUR/USD - Euro/dollar pin bar could lead to a retrace higher The EUR/USD showed some rejection of lower prices today as it formed a bullish pin bar (a price bar with a long lower tail or wick, showing rejection of lower prices). Given that the...
TheStreet.com  Jul 24  Comment 
EURUSD - Euro/dollar weakness persists, looking for sell signal NEW YORK (TheStreet) -- Since our last discussion of the euro/U.S. dollar ratio, it has continued to weaken. We can see that sellers are still clearly in control of this market and...
Forex News  Jul 23  Comment 
The US dollar jumped against the euro yesterday and kept its gains today due to the divergence between the monetary policy outlooks for the United States and the eurozone. The greenback was virtually flat versus the Great Britain pound...
Gold Stocks Today  Jul 22  Comment 
Earlier today, official data showed that the annual rate of U.S. inflation was at 1.2% in the previous month, while core inflation (without food and energy costs) increased by just 0.1% month-on-month and U.S. consumer prices were up 0.3%. On ...
MarketWatch  Jul 22  Comment 
The euro falls to an 8 month low against the dollar, it’s lowest level since the European Central Bank surprised the market with a 25 basis point rate cut in November 2013.
SeekingAlpha  Jul 20  Comment 
By Cliff Wachtel: FX Traders' weekly EURUSD fundamental & technical picture, this week's market drivers that could change it- the bullish, the bearish and likely EURUSD direction. Technical Outlook Summary Short Term Technical Outlook:...
TheStreet.com  Jul 17  Comment 
EURUSD - Euro/dollar Approaching Key Support near 1.3500 NEW YORK (TheStreet) -- The euro against the U.S. dollar has fallen significantly lower so far this week as it continues to work its way lower from the key resistance area up between 1.3675...
Mondo Visione  Jul 10  Comment 
Moscow Exchange is to change the calculation mechanism for EUR/RUB and EUR/USD futures settlement prices from September 2014. The relevant resolutions were adopted by Moscow Exchange"s Derivatives Market Committee on 25 June and FX Market...
FX Street  Jul 10  Comment 
Majors EUR/USD: SHORT AT 1.3618 FOR 1.3503 OBJECTIVE, STOP 1.3667 USD/JPY: SHORT AT 101.83 FOR... For more information, read our latest forex news and reports.
FX Street  Jul 10  Comment 
  DAILY EUR/USD TECHNICAL OUTLOOK Last Update At 10 Jul 2014    00:00GMT Trend Daily... For more information, read our latest forex news and reports.




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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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