Popular euro currency pairs

EUR/USD

EUR/USD is the forex ticker for the exchange rate between the euro and the US dollar. It tells traders how many dollars are needed to buy one euro in real time.

The pair is the world’s most traded, accounting for around 24% of all currency trades, according to 2019 figures from the Bank for International Settlements. Due to the pair’s ongoing popularity, liquidity is consistently high, reducing slippage for traders, and spreads are tight, minimising the cost of trading.

For this pair, traders will need to consider fundamental factors surrounding the European Central Bank, such as ECB interest rate decisions, as well as those US releases capable of moving price. Due to its high trading volume, EUR/USD isn’t generally known for high volatility, meaning it may be less susceptible to sudden and large price shifts.  

EUR/GBP

EUR/GBP is the forex ticker for the exchange rate between the euro and the British pound. It tells traders how many pounds are needed to buy one euro in real time.

The pair is consistently in the top ten most traded in the world. As both currencies are heavily traded the pair’s high liquidity, tight spreads and relatively low volatility are consistent. When trading the pair, speculators should be mindful of Bank of England announcements as well as the economic and political factors that can affect the value of GBP, in addition to a scrutiny of the fundamental drivers on the EUR side.

EUR/JPY

EUR/JPY is the forex ticker for the exchange rate between the euro and the Japanese yen. It tells traders how many Japanese yen are needed to buy one euro in real time.

When trading pairs involving JPY, traders should be aware of the impact Japanese economic initiatives can have on the currency, as Bank of Japan announcements can be influential. Also, data points such as the Tankan survey and the Tokyo Area CPI can give useful information on business performance and inflation rates respectively. Also, Japan’s currency can be sensitive to factors with which traders may be unfamiliar, such as natural disasters.

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