EUR/USD represents the exchange rate between the euro and the U.S. dollar. Because both the European Union and the United States have large, influential economies, this pair is heavily traded by banks, institutions, and retail traders. It attracts high liquidity, tight spreads, and constant price movement throughout the global trading day.
The value of EUR/USD is influenced by interest rate decisions from the European Central Bank (ECB) and the Federal Reserve (Fed), as well as economic reports such as inflation, GDP, employment, and manufacturing data. Political events or unexpected announcements can also cause sharp movements. Because of its strong liquidity, EUR/USD responds quickly to global news.
Traders use EUR/USD for speculation, hedging, and understanding overall currency market sentiment. Since it reacts strongly to macroeconomic trends, many view it as a benchmark for the broader foreign exchange market.
EUR/USD affects global trade, financial markets, and cross-border transactions. Many international companies and investors monitor it to understand currency trends and manage exchange-rate risk.
EUR/USD is driven by interest rate differences between the ECB and the Fed, economic reports from both regions, inflation levels, and overall market sentiment. Political events—such as elections, policy changes, or geopolitical tensions—can also move the pair. Traders monitor all these factors because EUR/USD often reacts quickly to new information.
The euro and the U.S. dollar represent two of the world’s largest economies, creating high demand for this pair. Both currencies have deep, liquid markets supported by major banks and central institutions. The pair’s high trading volume leads to tight spreads and consistent price movement, which attracts traders of all types.
Traders use EUR/USD to speculate on economic trends, hedge exposure to European or U.S. markets, or test macro-based strategies. Long-term traders examine interest rate cycles and global developments, while short-term traders focus on technical patterns and intraday volatility. Because EUR/USD reacts predictably to major economic data releases, it is a popular choice for event-driven trading.
If the European Central Bank raises interest rates while the Federal Reserve holds rates steady, demand for euros may rise. This can cause EUR/USD to move higher because investors shift money into the currency offering better returns.
FinFeedAPI’s Currencies API provides real-time and historical EUR/USD exchange rates, allowing users to track trends, compare time periods, and build tools for FX analysis or cross-border pricing.
