Since its beginning, when the Euro was introduced as an accounting currency on January 1st, 1999, the common currency has grown to be the second largest reserve currency on the planet, after the U.S. Dollar. The online forex news covers the movement of the EURUSD rate on a constant basis because the currency pair makes up the most liquid and heavily traded currency pair in the world.
The Euro has been actively traded since January 1st, 2002 when coins and bills were issued to replace the original 14 currencies which made up the former European Currency Units or ECUs.
Since then, six other currencies have joined the original 14 with the Estonian Kroon the latest currency to be replaced with the Euro.
EURUSD Trading
USD forex news generally contains detailed information about trading the currency pair with many news agencies offering both a Euro currency forecast and a USD Euro forecast.
Spreads in the EURUSD currency pair is generally one pip, and sometimes among dealers and for large transactions can be less than one pip. Nevertheless, depending on economic releases and world events in the realtime forex news, spreads can widen considerably if the volatility of the currency pair increases.
Making a Euro Currency Forecast
Generally, research on the Euro focuses mainly on the exchange rate against the U.S. Dollar, since the forex USD rate is the most actively traded and hence important. Nevertheless, the Euro is also actively traded against the British Pound or GBP, the Japanese Yen or JPY and the Swiss Franc or CHF.
A typical Euro currency forecast will often include the ECB or European Central Bank’s monetary policy and interest rate outlook, historical price action in the EURUSD exchange rate and any pertinent news that might affect the Euro.
USD Euro Forecast
Many websites which offer online forex news, will also contain a USD Euro forecast. This forecast will highlight the U.S. Federal Reserve’s interest rate policy, as well as the ECB’s interest rate policy.
In addition, the USD forex news will also highlight major economic and political events which might possibly influence the value of the Greenback against the Euro, as well as other major currencies like the Australian Dollar or AUD/USD.
The EURUSD currency pair offers both beginning and seasoned traders ample opportunities to make profitable trades. With the depth of the market and the constant coverage of the rate on the online forex news, EURUSD can be the most accessible and viable currency pair, especially for new forex traders.
Trading in EURUSD is perfect for forex day traders, range traders and especially scalpers and short term traders that can take advantage of the narrow bid/offer spreads.
Other currency pairs may also provide traders with opportunities for profitable trades, such as AUD/USD, however the exchange rate AUD USD often has much wider bid/offer spreads and often trades with a considerably more volatility.
While the Euro generally trades in long sweeping moves, recent events have added volatility to the EURUSD exchange rate. Sovereign debt concerns in addition to the bailouts of Greece and Ireland have made trading the EURUSD rate much more interesting and profitable — if the trader is on the right side of the move. Nevertheless, EURUSD continues being the most traded and liquid currency pair in the forex market.
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