Benzinga  Aug 26  Comment 
EUR/USD is trading at 1.1292, up 0.0004. The pair is trading very choppy and the session gains have been erased. Market chatter about global headline news and money flows along with comments from Fed Chair Janet Yellen has kept buyers and...
Benzinga  Aug 26  Comment 
Benzinga  Aug 26  Comment 
EUR/USD is trading at 1.1305, up 0.0018. The pair is trading just under the highs of the session. Market chatter about global headline news and comments from policy makers is making the rounds. Italy's ISTAT is scheduled to report...
Benzinga  Aug 26  Comment 
EUR/USD is trading at 1.1288, up 0.0002. The European Central Bank (ECB) reported that loans to households in the Euro Area rose 1.8 percent year over year in July, the same level as June. Credit to non-financial corporations rose 1.9 percent...
Benzinga  Aug 26  Comment 
EUR/USD is trading at 1.1286, down 0.0001. The pair is trading on both sides of unchanged. France's INSEE reported that consumer confidence edged up to 97 in August versus 96 in July. The agency's second estimate for second quarter GDP...
Benzinga  Aug 25  Comment 
EUR/USD is trading at 1.1282, up 0.0022. The pair is trading higher on the session as overseas forex traders wind down trading for the day. Market talk about money flows and comments from various policy makers has kept both buyers and sellers...
Benzinga  Aug 25  Comment 
EUR/USD is trading at 1.1292, up 0.0032. The pair is trading near the session highs. Market talk about money flows and headline news is making the rounds. France's INSEE reported that August business confidence slipped to 101 versus 103...
Benzinga  Aug 24  Comment 
The U.S. Census Bureau will release news on Durable Goods Thursday at 8:30 a.m. ET. There are two reports out. The first one includes the value of new purchase orders for all durable goods. Items with a life expectancy of three years or more that...
Benzinga  Aug 24  Comment 
EUR/USD is trading at 1.1258, down 0.0042. The pair is trading choppy and a little above the session lows. Market chatter about global headline news and the upcoming speech from Federal Reserve Chair Janet Yellen on Friday is making the...
Benzinga  Aug 24  Comment 
EUR/USD is trading at 1.1252, down 0.0049. The pair's losses have accelerated as overseas traders wind down forex trading for the day. Market chatter about European headline news and economic data is starting to show up. INSEE is...
Benzinga  Aug 24  Comment 
EUR/USD is trading at 1.1265, down 0.0035. The pair has extended the session losses. Market talk about headline news and chatter about the upcoming speech from Federal Reserve Chair Janet Yellen at the Jackson Hole Symposium on Friday is...


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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