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 late August, the euro rally was still firmly intact.
The euro received a boost after August’s Jackson Hole symposium at which ECB President Mario Draghi did not talk down the euro or make any reference to ECB concerns over the euro’s significant appreciation against the dollar this year.
EUR/USD rose following Jackson Hole to 1.194 – its highest level since January 2015. This year the euro has made a mockery of fears that it would fall to parity with the dollar. It had been as low as 1.034 in January.
Against the British pound, post-Jackson Hole the euro reached a level unseen since October 2009, at 0.9269.
Such has been the euro’s turnaround that both HSBC and Morgan Stanley have forecast EUR/GBP to reach parity (1.0) within the coming months. Morgan Stanley predicted in August a EUR/GBP exchange rate of 1.02 by the end of March next year. HSBC had already publicly forecast a rate of 1.0 by year-end.
In September, Dutch bank ABN Amro predicted EUR/USD would rise to 1.3 by the end of 2018. As reasons for the pair’s climb, ABN cited “strong conviction” on future US dollar weakness and expectations for the ECB to scale back on quantitative easing.
The euro began rallying strongly in April as Emmanuel Macron’s victory in the French presidential election became clear, which eased EU political fears.
EUR/USD - 03:23 CEST
1 Day 1 Week: Euro was easing down against the United States Dollar with the EUR/USD at 1.1951, a drop of -0.11% but remains up for the last 7 days with a rise of 0.52%.
3 Month Trend: EUR/USD is trading higher in the 3-month range [Hi:1.2052, Lo:1.1194] and for the quarter is up 6.39%.