Benzinga  2 hrs ago  Comment 
EUR/USD is trading at 1.0888, up 0.0011. The pair is trading near the session highs as overseas forex traders wind down trading for the day. Market talk about comments by policy makers in Europe and global headline news is making the...
Benzinga  6 hrs ago  Comment 
EUR/USD is trading at 1.0883, up 0.0010. The pair is trading rangebound and a little higher on the session. Italy's National Institute of Statistics (ISTAT) reported that industrial year over year industrial orders rose 15.9 percent in...
Benzinga  6 hrs ago  Comment 
EUR/USD is trading at 1.0879, up 0.0007. The pair is trading rangebound early Tuesday morning. France's INSEE reported that French business confidence fell to 102 in October versus 103 in September. The agency is scheduled to release third...
Benzinga  Oct 24  Comment 
EUR/USD is trading at 1.0881, up 0.0008. The pair is trading in the middle of the session range as overseas forex traders wind down trading for the day. Market talk about overseas headline news is making the rounds. Chatter about...
Benzinga  Oct 24  Comment 
EUR/USD is trading at 1.0891, up 0.0018. The pair is trading a little under the session highs. The Markit's Euro area October manufacturing purchasing managers survey (PMI) showed a rise to 53.3 versus 52.6 in September. The services PMI...
Benzinga  Oct 21  Comment 
EUR/USD is trading at 1.0868, down 0.0060. The pair is trading at session lows as overseas traders wind down forex trading for the day. Market talk about global headline news, money flows and economic data is making the rounds. European...
Benzinga  Oct 21  Comment 
EUR/USD is trading at 1.0878, down 0.0050. The pair is trading rangebound and just above the session lows. Market talk about global headline news and comments from various European Union policy makers is making the rounds. The European...
Benzinga  Oct 21  Comment 
Benzinga  Oct 20  Comment 
EUR/USD is trading at 1.0923, down 0.0050. The pair has extended the session losses as overseas forex traders wind down trading for the day. Market talk about comments from European Central Bank President Mario Draghi is ongoing and has kept...
Benzinga  Oct 20  Comment 
EUR/USD is trading at 1.1000, up 0.0028. The pair is trading very choppy. Market talk about comments from European Central Bank President Mario Draghi has kept both buyers and sellers active. In other Forex Markets; GBP/USD is trading at...


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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