EUR/USD: The Euro and The U.S Dollar
The EUR/USD currency cross (with the Euro as the base currency and the U.S. Dollar as the quote currency) is also considered a major cross pairing two ‘reserve’ currencies, the Euro considered the second largest of the reserve currencies. The EUR/USD pair is not only traded more than any other cross, it is also the ‘youngest’ of the major currency pairs.
The Euro is under the control and administration of the ECB (European Central Bank) which sits in Brussels and as such, sets the monetary policy of the Euro. It is also the exclusive currency of the Eurozone’s 18 member states, which have a population exceeding 341 Million. EU Member States:
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
History of the Euro & the European Union
A political and economic merger of European Sovereign Nations, The European (EU) was officially formed when the Maastricht Treaty was signed on February 7, 1992. The Monetary Union is comprised of 18 member nations and was established in 1999. The Euro became an ‘accounting currency’ on New Year’s Day, 1999 and the banknotes and coins were put into circulation on New Year’s Day, 2002. Since the end of 2002, the Euro has traded in value above the U.S. Dollar.
The Eurozone Economy
Considered a single market economy, the European Union has the highest GDP in the world, with over $18 Trillion, surpassing the US, China and Japan as the largest economy. 161 of the Fortune Global 500 are headquartered in the EU. Estimated at 30% of the Global wealth, the EU holds the largest net wealth.
Factors Affecting the EUR/USD currency pair
The highest level of trading of the EUR/USD occurs during the British Open and the New York Open. Similar to the GBP, in that it is a highly liquid currency cross pairing two of the largest economies, and reserve currencies, a variety of domestic and international economic factors come into play when considering the foreign exchange and trading this currency.
Due to the fact that the Euro has over 18 Countries which use the currency as their official currency, the economic factors of each country play a major role in price fluctuations. The EU Member countries with GDP’s (gross domestic product) have a greater impact on the value of the Euro. Other factors contributing to or impacting the value of the Euro are employment (or unemployment), trade balance, and inflation. Rising and falling commodity prices also have a direct correlation.
Trade with ZERO Spreads or Margins
The FOREX is a zero sum game. Someone has to win, why not you?
Experience today’s evolution in trading with the greatest Binary Options & Forex Trading Platform and the first Binary Options / Forex Retail Dealing Room.