EUR/USD is the most commonly traded pair in the Forex market. Its popularity can be contributed to the fact that each currency represents the world’s two largest economic and trading blocs, as well as many multinational corporations that conduct business in both the United States and Europe.
Price movements of this currency pair are generally related to factors that influence the value of either the EUR or the USD. As the world’s most liquid currency pair, the EUR/USD offers tight spreads and constant liquidity for traders who are looking to instantly buy or sell. The combination of stability and volatility makes the EUR/USD an excellent pair for beginner and advanced traders.
EUR/USD is the most traded currency pair in the world, with the highest trading volume.
The euro is the world’s second most popular currency, following the dollar.
There are over 17 countries which consider the euro their official currency and approximately 4 which use the euro on an unofficial basis. These countries are collectively known as the “Eurozone” or the “European and Economic Monetary Union (EMU)”.
The EUR/USD pair offers traders high liquidity and has very tight and competitive spreads.
The EUR/USD has a historical correlation with the GBP/USD.
The relative strength of the US economy and the European economy, which can be tracked through the daily news, generally influence this pair.