Optencis
EUR/USD is the price of one euro in US dollars. It is the most traded currency pair in the world, which gives it some of the lowest trading costs and makes it the first pair most traders learn. Its moves come down to one question: is the euro area or the United States the more attractive place to hold money right now? This guide shows how to read it, what moves it and when.
How to read the quote
At 1.0850, one euro buys 1.0850 dollars. The euro is the base currency, the dollar the quote currency:
- If EUR/USD rises to 1.0900, the euro has gained against the dollar (or the dollar has weakened).
- If it falls to 1.0800, the dollar has gained against the euro.
A pip is the fourth decimal: from 1.0850 to 1.0851 is one pip. On a standard lot of 100,000 euros, one pip is worth $10; our position size calculator turns this into a lot size for your account.
What moves EUR/USD
1. The gap between US and euro area interest rates
This is the main driver. Money flows towards the currency that pays more, or is expected to pay more. When the market expects the Federal Reserve to keep rates high while the European Central Bank cuts, the dollar tends to gain and EUR/USD to fall. The opposite pushes it up. What counts is the change in expectations, more than the current level of rates.
2. Inflation and jobs data
Every figure that changes those expectations moves the pair: US inflation (CPI), the US jobs report, euro area inflation, growth (GDP) and business surveys (PMI). A US figure well above forecasts usually lifts the dollar; a strong euro area figure supports the euro.
3. Risk appetite
In times of stress (a financial crisis, a war, a market crash), investors often seek the dollar as a safe haven, which weighs on EUR/USD. When markets are calm, that support for the dollar fades.
The events to watch
| Event | How often | Usual time |
|---|---|---|
| US jobs report (NFP) | Monthly, usually the first Friday | 8:30 New York |
| US inflation (CPI) | Monthly | 8:30 New York |
| Fed decision | 8 times a year | 14:00 New York, press conference at 14:30 |
| ECB decision | 8 times a year | 14:15 Frankfurt, press conference at 14:45 |
| Euro area inflation (flash estimate) | Monthly, around the turn of the month | 11:00 Frankfurt |
| Business surveys (PMI) | Monthly, first estimates in the second half of the month | Morning in Europe, then the US |
The exact dates and the forecast for each release are in our economic calendar, and the next rate decisions in central bank meetings.
The best hours to trade EUR/USD
EUR/USD trades 24 hours a day, five days a week, but not with the same energy all day:
- The Asian session is usually the calmest: small ranges, and moves that often do not last.
- The London opening brings the first real volume of the day.
- The London–New York overlap, roughly 13:00 to 17:00 London time, is the most active period, with the US data released at 8:30 New York time.
On an ordinary day, EUR/USD often moves 50 to 100 pips from its low to its high; on a Fed, ECB or jobs report day, it can move much more within minutes. See which markets are open right now with our market hours tool.
Trading costs
Because it is so heavily traded, EUR/USD usually has one of the narrowest spreads in forex, often well under a pip with many brokers during active hours. The spread widens at night, around the daily rollover, and just before and after major news: check it before you trade.
EUR/USD in binary options
On binary options platforms, EUR/USD follows the real market during the week. At weekends, the platforms often offer EUR/USD OTC instead, whose price comes from the platform itself: the news and the hours above do not apply to it. See what changes with OTC assets.
Frequently asked questions
Why is EUR/USD the most traded pair?
Because it links the world’s two largest currency blocs: the dollar, the main reserve currency, and the euro, the second. Trade, investment and central bank reserves between the two create enormous daily volume.
What is the best time to trade EUR/USD?
The London–New York overlap, roughly 13:00 to 17:00 London time, when volume and movement are highest. The Asian session is usually much quieter.
What makes EUR/USD go up?
Mostly expectations that euro area rates will rise relative to US rates: a more hawkish ECB, a more dovish Fed, strong euro area data or weak US data. Calmer markets can also help, as demand for the dollar as a safe haven fades.
How much is one pip on EUR/USD?
$10 per standard lot, $1 per mini lot (10,000 euros) and $0.10 per micro lot (1,000 euros).
Forex and CFDs are high-risk products traded with leverage, and most retail accounts lose money. Only trade money you can afford to lose.
