See full non-independent research disclaimer and quarterly summary. You can profit from trading EUR/USD if you trade the currency pair via spread bets or CFDs. If you think that EUR is going to increase against USD, you would buy the pair (go long). If you think that the euro will decrease in value against the US dollar, you would sell the pair (go short).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
You could say that the euro and the US dollar are safe currencies, because both have traditionally been viewed as ‘safe havens’. However, forex is a volatile market and currency values fluctuate continuously. So, whether EUR and USD are safe currencies will always depend on liquidity, volatility and economic events (such as Brexit). Countries started to do more business with each other after the euro’s introduction due to the lack of currency risk, with the resultant rise in gross domestic product (GDP) growth across the eurozone causing EUR/USD’s price to surge. The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.
Outside of these times, there tends to be more volatility, which could also provide opportunities to profit. When trading euro-dollar, you should watch out for economic reports, political events and monetary policies that move the price of EUR/USD. Recurring events such as European Central Bank (ECB) and Federal Reserve Bank announcements, as well as developments concerning Brexit and US-China trade discussions impact the price of euro-dollar.
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CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. Open a free, no-risk demo account to stay on top of forex movement and important events. Get the week’s market-moving news sent directly to your inbox every Sunday.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider.
Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. You should familiarise yourself with these risks before trading on margin. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
- During this open period, EUR/USD tends to be more liquid and spreads are generally tighter.
- If you think that the euro will decrease in value against the US dollar, you would sell the pair (go short).
- The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.
- So, whether EUR and USD are safe currencies will always depend on liquidity, volatility and economic events (such as Brexit).
EUR/USD – Euro US Dollar
The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch. The best EUR/USD trading strategies to use will depend on your personal trading style. There are many forex strategies to choose from, enabling you to determine when it’s time to enter and exit a trade. These powertrend include the RSI indicator strategy, momentum indicator strategy and breakout trading strategy. Get The Week Ahead, our free rundown of the coming week’s market-moving events and forex pairs to watch, delivered to your inbox every Sunday.
The probability of a 50 bps Federal Reserve (Fed) rate cut in September climbed above 40% after this data, per CME FedWatch Tool, and triggered a USD selloff. The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure. You can trade Brexit volatility with EUR/USD via an IG CFD trading or spread betting account. CFDs and spread bets enable you to speculate on markets that are rising as well as falling. Both are derivative products, which means you only have to put up a small deposit – called margin – to gain exposure to the full value of the trade.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk.
CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. The percentage of IG client accounts with positions in this market that are currently long or short. On a yearly basis, the Producer Price Index (PPI) rose 1.7% in August in the US, down from 2.1% in July and below the market expectation lmfx review of 1.8%.
The euro – now used by 19 EU countries – is the second largest, with the Japanese yen (JPY) in third place and the pound (GBP) in fourth. The same happened when Trump won the US elections later that year. The uncertainty surrounding the final Brexit deal continues to affect euro pricing, with Britain expected to leave the EU in October 2019. A ‘hard Brexit’ (no deal) is likely to have a negative impact on the euro, whereas a ‘soft Brexit’ (in which the UK and EU maintain close ties) could limit the impact or even strengthen the euro. USD/JPY remains under some selling pressure on Friday and hits a fresh YTD low. The divergent Fed-BoJ policy expectations continue to weigh heavily on the pair.
Open a free, no-risk demo account to stay on top of index movement and important events. WTI Oil is rebounding off four-month lows on renewed expectations the Fed may cut interest rates by 50 bps. Supply closures from Hurricane Francine which is ravaging the Gulf of Mexico are another bullish factor.
The USD/JPY (or US Dollar Japanese Yen) currency pair is one of the ‘Majors’, the most important pairs in the world. Japanese Yen has a low interest rate, normally used in carry trades, that’s why is one of the most trades currencies worldwide. In the USD/JPY the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from United States of America) and Japanese economies.
While the Fed looked to increase interest rates in response to a strengthening economy after 2008, the ECB had to keep interest rates low and introduce a quantitative easing programme to boost spending in Europe. EUR/USD (or euro-dollar) does not have a very long history, as the euro only came into existence as a digital currency in January 1999 and a physical currency in 2002. However, this young forex pair quickly became the most popular by trading volume.
