Euro General Info
The three letter currency code for the Euro is EUR and the symbol is €. It is the domestic currency in Aaland Islands, Andorra, Austria, Belgium, Cyprus, Estonia, Eurozone, Finland, France, French Guinea, French Southern Territories, Germany, Greece, Guadeloupe, Vatican City, Ireland, Italy, Luxembourg, Malta, Martinique, Mayotte, Monaco, Montenegro, Netherlands, Portugal, Reunion, Saint Barthélemy, Saint Martin, Saint Pierre And Miquelon, San Marino, Slovakia, Slovenia and Spain.
The euro (ISO: EUR) is involved in slightly more than 30% of all foreign exchange deals, and as such, is the world’s second most traded currency, behind the US dollar.
The euro is the currency of the eurozone (officially called the ‘euro area’), which consists of 19 of the 28 member states of the European Union, and is used by almost 350 million Europeans. It was introduced in January 1999.
Of all the thousands of exchange rates that exist in the world, the euro-to-US dollar exchange rate is the most actively traded, or most ‘liquid’.
Since its introduction, the euro’s lowest value against the dollar came in October 2000 when EUR/USD hit lows of 0.8231. The currency was strongest in July 2008, shortly before the worst stage of the 2007-2009 financial crisis, when EUR/USD reached 1.6038.
There are currently more than twenty nations and territories which peg their currencies to the euro, the largest of which is Denmark.
EUR - Market View
In May and June, the euro was resurgent following Emmanuel Macron’s victory in May’s French presidential election and an apparent change in tone of the rhetoric coming from the European Central Bank (ECB).
At the end of June, EUR/USD was trading above 1.14 and had gained 6.5% since April 21st – that date being the trading day immediately prior to the French election’s first round of voting, in which Macron pulled in a higher percentage of the vote than the market’s least favourite presidential candidate, Marine Le Pen.
Following Brexit and Trump surprises in 2016, fears that France may also vote the way of populism and nationalism, which might destabilize the eurozone, had weighed heavily on the euro for many months prior to the election.
Adding fuel to the euro rally was ECB president Mario Draghi who in late June appeared to talk up eurozone inflation. He suggested that factors currently weighing on inflation were temporary and that the ECB would look through them when forming its future monetary policy.
Against the British pound and Australian dollar, the euro ended June in the mid-0.87s and mid-1.48s respectively.
For the rest of 2017, the euro will likely be driven by talk of the ECB tapering its bond buying program. Any move to taper would be akin to monetary policy tightening and would be supportive of higher euro exchange rates.
EUR/USD - 01:00 CEST
1 Day 1 Week: Euro finished the last session of the week up against the United States Dollar with the EUR/USD at 1.1663, a rise of 0.31% and also up for the last 7 days with a rise of 2.38%.
3 Month Trend: EUR/USD is touching 3-month highs [Hi:1.1679, Lo:1.0837] and for the quarter is up 7.06%.