EUR/USD is the most traded currency pair in the world, representing the exchange rate between the euro and the US dollar. It accounts for approximately 24% of all daily forex trading volume. The pair reflects the relative economic strength of the Eurozone (20 countries) versus the United States.
EUR/USD is driven by interest rate differentials between the ECB and Federal Reserve, GDP growth divergence, inflation data (CPI, PCE), employment figures, trade balance dynamics, political stability in Europe (elections, fiscal policy), and global risk sentiment. ECB and Fed monetary policy meetings are the primary scheduled catalysts.
EUR/USD has the tightest spreads of any forex pair. It trades most actively during the London-New York session overlap (13:00-17:00 UTC). The pair tends to trend during rate divergence cycles and range during policy convergence. Non-farm payrolls and ECB rate decisions create the largest moves.
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Common questions about Euro / US Dollar (EURUSD=X)