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Euro / US Dollar

Forex
EUR/USD
1.0989
+1.28%

Simulated chart for educational purposes β€” not real market data.

Overview β€” Euro / US Dollar

EUR/USD is the most traded currency pair in the world. It tells you how many US dollars one euro buys.

How it works

The pair reflects the relative strength of the European and US economies. It trades 24/5 with peak liquidity during the London–New York overlap. Central bank policy divergence is the dominant long-term driver.

Key factors

Interest rate differentials
Whichever central bank (Fed vs ECB) is more hawkish tends to strengthen its currency.
Inflation
CPI surprises change rate expectations and move the pair.
Growth & PMIs
Stronger growth on one side attracts capital flows.
Risk sentiment
USD often strengthens in 'risk-off' episodes as a safe haven.
Energy prices
Europe is energy-import heavy β€” high oil/gas prices weigh on the euro.

What to watch

  • β€’Fed and ECB rate decisions
  • β€’US Non-Farm Payrolls (first Friday)
  • β€’Eurozone & US CPI prints
  • β€’ISM and PMI surveys
  • β€’Speeches from Powell and Lagarde