EURUSD witnessed a decline in the European market after it recorded yesterday the highest daily rise in six yearsread more
Forecast & Technical Analysis
What is the EURUSD?
EUR/USD or simply Euro Dollar is one of the most significant currency pairs in the Forex market. The pair determines the exchange rate of the Euro against the US dollars. For instance, a quotation 1.1780 describes the value of the Euro in US Dollar, meaning 1 Euro equals 1.1780. Euro, the single block currency, came into existence in 1999 and since then 19 of the 27 EU member states have adopted it. It is so remarkable for a currency pair that did not exist just two decades ago now accounts for nearly 25 percent of the total Forex market volume.
EUR/USD is one of the most favorite currency pairs of both retail traders and institutional investors. The Forex brokers provide the lowest trading spread starting from just 0.2 pips. Some ECN brokers also offer spread starting from zero pips. The pair’s pip value on a standard lot (100,000) is $10. The leverage ratio varies from broker to broker but with some brokers it goes as high as 1:2000.
Euro Dollar Fundamentals
The EUR/USD represents the two well-documented giant economies of the world and for this reason, its fundamentals are often more predictable compared to the other pairs. The biggest factors that affect the value of the pair are the monetary policy and the economic condition of both countries. For instance, a higher interest rate by the US Federal Reserve strengthens the US dollar and drags the EUR/USD lower. Likewise, higher interest rates in the EU or the better economic numbers strengthen the Euro and takes the pair higher.
In the 2008 recession, the EUR/USD surged to nearly 1.1600. The prime reason behind the surge was the US Federal Reserve that stimulated the local economy with trillions of dollars and kept the interest rates nearly to zero. Similarly, in the 2016 Brexit referendum when the UK decided to leave the European Union, the pair plummeted and dropped to almost 1.0350.
EUR/USD is highly regarded for its liquidity and volatility and traders find it ideal for day trading, scalping and even for swing trading.
BrokerTrending.com provides you with the Latest Euro to Dollar (USD) forecasts. Find here a technical analysis on a weekly basis on the currency pair EUR/USD.
EURUSD fell on Friday morning in the European market, and recorded its first daily loss, retreating from its highest level in three monthsread more
EURUSD continued to achieve gains on Friday morning in the European market, and recorded the fifth consecutive daily riseread more
EURUSD continues to perform positively on Friday morning in the European market to reach its highest level in two monthsread more
The USD rose against a basket of the major currencies in the morning trading on Monday in the European marketread more
EURUSD continued to decline in the morning trading on Monday in the European market, and recorded the second consecutive daily declineread more
EURUSD extended its losses on the morning of Wednesday’s trading in the European market and recorded the sixth consecutive daily lossread more
EURUSD rose in the morning trading on Monday in the European market to be rebounded from its lowest level in 16 monthsread more
EURUSD witnessed a decline on Wednesday morning in the European market and recorded the first daily declineread more
Eurozone – German ZEW Economic Sentiment On Tuesday, at GMT 10:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) released its German economic sentiment index. It measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts. Since the professional investment community, investors and analysts have the latest data; their […]read more