EUR/USD is the most traded currency pair in the world, representing the exchange rate between the euro (EUR) and the US dollar (USD). It reflects how many US dollars are required to purchase one euro. Introduced in 1999 with the launch of the euro, this pair has become a global benchmark due to the economic size and influence of both the Eurozone and the United States. It is highly liquid and closely watched by traders, investors, and policymakers, with its value shaped by monetary policy, interest rate differentials, macroeconomic indicators, and geopolitical developments.
Historically, EUR/USD has seen major swings. In the early 2000s, the pair fell to around 0.82 before rallying to a peak above 1.60 in 2008 during a period of dollar weakness. It then declined sharply during the European debt crisis. In 2022, amid aggressive interest rate hikes by the US Federal Reserve and rising global uncertainty, the pair briefly fell below parity, trading under 1.00 for the first time in nearly two decades. However, as inflation in the US began to ease and expectations of rate cuts grew, the euro gradually strengthened through 2023 and 2024.
As of August 2025, EUR/USD is trading around 1.15800. This reflects a moderate recovery of the euro from its lows, supported by a more stable Eurozone economy and a softer US dollar. The pair remains sensitive to central bank signals, particularly from the European Central Bank and the Federal Reserve, and is likely to continue reacting to shifts in monetary policy, inflation data, and global risk sentiment. EUR/USD remains a cornerstone of the forex market, widely used by traders for both short-term strategies and long-term positioning.
Historically, EUR/USD has seen major swings. In the early 2000s, the pair fell to around 0.82 before rallying to a peak above 1.60 in 2008 during a period of dollar weakness. It then declined sharply during the European debt crisis. In 2022, amid aggressive interest rate hikes by the US Federal Reserve and rising global uncertainty, the pair briefly fell below parity, trading under 1.00 for the first time in nearly two decades. However, as inflation in the US began to ease and expectations of rate cuts grew, the euro gradually strengthened through 2023 and 2024.
As of August 2025, EUR/USD is trading around 1.15800. This reflects a moderate recovery of the euro from its lows, supported by a more stable Eurozone economy and a softer US dollar. The pair remains sensitive to central bank signals, particularly from the European Central Bank and the Federal Reserve, and is likely to continue reacting to shifts in monetary policy, inflation data, and global risk sentiment. EUR/USD remains a cornerstone of the forex market, widely used by traders for both short-term strategies and long-term positioning.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.