The essentials
- EURUSD shows how many US dollars one euro buys; a rise means a stronger euro or a weaker dollar.
- One standard lot moves $10 per pip, because the dollar is the quote currency.
- The pair responds most to differences between European Central Bank and Federal Reserve policy, and trades most actively when London and New York overlap.
EURUSD is the exchange rate between the euro and the US dollar, the two most widely used currencies in the world. A rate of 1.1600 means one euro costs 1.16 dollars. It is the most traded currency pair in the Bank for International Settlements' surveys of the foreign exchange market, which is why it usually has some of the narrowest spreads available.
Reading the EURUSD quote
The euro is the base currency and the dollar is the quote currency. On most platforms the slash is dropped, so the EURUSD forex symbol and EUR/USD are the same instrument. If the rate rises, the euro has strengthened against the dollar, or the dollar has weakened, or both. The inverse rate, dollars into euros, is 1 divided by the quote: at 1.1600, one dollar buys about 0.8621 euros.
Because the dollar is the quote currency, pip values are fixed in dollars: $10 per pip on a standard lot, $1 on a mini lot and $0.10 on a micro lot. Illustrative example: a 20-pip move on one standard lot is worth $200. The pip calculator handles any lot size.
Spreads and liquidity
Because so much of the world's currency trading involves the euro and the dollar, many banks and dealers compete to quote this pair. That competition keeps spreads among the tightest in the market during busy hours. They still widen at the daily rollover, in the first minutes after the Sunday open, and around major announcements, so the cost of trading depends on when you trade as well as with whom.
What drives the pair
- Interest-rate policy. The European Central Bank sets rates for the euro area and the Federal Reserve for the US. Changes in the expected gap between them move the pair more than anything else.
- Inflation and growth data. US employment and inflation releases, and euro-area inflation and business surveys, shift expectations about both central banks.
- Energy and trade. The euro area imports much of its energy, so sharp rises in energy prices can weigh on the euro.
- Risk appetite. In periods of global stress, money has often flowed toward the dollar.
- Politics. Elections, budget disputes and questions about euro-area cohesion have all moved the pair at times.
When EURUSD moves most
The pair trades whenever the forex market is open, from Sunday evening to Friday evening New York time. Activity is lightest in the Asian session and heaviest while London and New York are both open, in the early afternoon London time. Scheduled data releases, such as the monthly US jobs report or a central bank decision, can move the pair sharply within seconds, and spreads often widen just before and after. Check the market board to see which centres are open now.
Live prices and why they differ
There is no single official price for a currency. An EURUSD live quote on one platform may differ slightly from another, because each provider streams prices from its own sources and adds its own spread. Free charts and news pages may also show delayed or indicative prices. When a news page reports where EURUSD today is trading, treat it as a reference point, not a price you could necessarily deal at. Reference rates, such as the ECB's daily euro rates, are published for information, not for trading.
EURUSD and other symbols on a platform
Trading platforms often list index and commodity CFDs alongside currency pairs, which is why people sometimes speak of "US30 forex" as if the Dow were a currency. It is not: US30 is simply a common platform label for a contract on the Dow Jones Industrial Average, a price-weighted index of 30 large US companies. It carries its own margin rules (20:1 for major indices under UK and EU retail caps, against 30:1 for EURUSD) and its own trading hours. Always check a symbol's contract specification before trading it.
EURUSD over a longer horizon
The euro was introduced for financial markets on 1 January 1999, with notes and coins following in 2002. Since then the pair has covered a wide range: in 2008 one euro bought close to 1.60 dollars, and in 2022 it fell below parity, one euro for one dollar, for the first time in about two decades. Moves of that size unfold over years, not days, and they matter far more to someone holding assets in the other currency than any single day's fluctuation. Past ranges say nothing about where the pair will go next.
The cost of holding the pair
Beyond the spread, a leveraged EURUSD position held past 17:00 New York time is charged or credited overnight financing, which reflects the difference between euro and dollar interest rates plus the provider's margin. For long-held positions this can be the largest cost. See trading fees explained. For the margin a position needs, use the margin calculator.
Why the pair matters to long-term investors
If you hold US assets and spend euros, or hold European assets and spend dollars, EURUSD moves the value of your savings even when the assets themselves are still. A fund's currency-hedged share class removes most of this effect, for a cost; an unhedged class keeps it. Neither choice is right for everyone, but it should be a deliberate one. For the wider context see how forex trading works.
Reader questions
Why is EURUSD so widely traded?
It pairs the currencies of the two largest developed economic areas, used heavily in trade, investment and central bank reserves. That depth of activity keeps spreads narrow.
What does it mean when EURUSD falls?
One euro buys fewer dollars. That could reflect euro weakness, dollar strength, or both. Comparing the euro and the dollar against other currencies can show which side is moving.
Is US30 a currency pair?
No. US30 is a platform label for a contract on the Dow Jones Industrial Average, a stock index. It is listed near currency pairs on some platforms but follows different rules.
Sources
- Bank for International Settlements, Triennial Central Bank Survey
- European Central Bank, euro foreign exchange reference rates
- European Securities and Markets Authority, product intervention measures on CFDs