This euro to dollar site has been developed for both traders and non traders as a resource to explain the euro to dollar exchange rate both as an instrument for trading and also to highlight and give a view as to the short, medium and long term direction for the pair, regardless of whether you looking to exchange currency either for personal or business use. As forex traders already know the euro to dollar is the most widely traded of the major pairs in the forex markets given that the pair represent the two largest global economies, namely the US and the Eurozone.
The euro became an official unit of exchange on January 1 1999 for 11 nations: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain but was not yet legal tender. Four days later it was quoted for the first time on the forex markets and ended the trading day at 1.1837 USD but by 26 October 2000 the euro has fallen to an all time low of 0.8230 against the US dollar.
On 1 January 2001 Greece too adopted the euro, becoming the eurozone’s 12th member although it was not until January 1st 2002 that euro notes and coins were introduced across the 12 states thereby becoming legal tender and finally replacing individual, national currencies.
2007 saw Slovenia (the first former communist country) enter the eurozone, less than 3 years after joining the European Union.
On 1 January 2008 Malta and Cyprus were admitted to the eurozone and on 15 July 2008 the euro hit a record high of 1.6038 against the US dollar, against the backdrop of the start of the present financial crisis, global recession and market correction.
January 2009 saw Slovakia, another former Eastern bloc state, join the eurozone as the global financial crisis started to bite.
By December 2009 the euro was once again under scrutiny as the sovereign debt of some eurozone members (notably Greece and Ireland) came to light and the euro started to tumble against the US dollar at an alarming rate as the ECB (European Central Bank) and eurozone politicians held crisis talks in May 2010 and agreed a massive bailout plan for Greece with input from the IMF. This was the first real test for the euro and many market analysts were openly discussing its imminent collapse and demise. However, the markets were temporarily reassured and the euro steadied before falling to a fresh low of 1.1876 during June 2010 – a level not seen since 2006.
Since this low the euro to dollar has bounced back strongly as it now begins to approach an area of deep price congestion on the daily chart. Whether this recovery continues in the longer term or is merely a technical correction only time will tell. It is interesting to note that in the last few weeks such worthy commentators at Deutsche Bank have postulated that the euro is forecast to fall back towards parity against the US dollar within the next 18 months. From a technical perspective this seems increasingly likely once the current reversal has petered out which seems to be happening at present as the rate approaches USD1.35 and beyond. The monthly chart for the euro to dollar is also mirroring this view as the pair begin to run into the price resistance sitting at the 9 month moving average which may block this current short term rally. The longer term outlook for the euro to dollar remains heavily bearish and with the ongoing fundamental picture as a backdrop the euro will almost certainly decline in the medium term.
A daily analysis of the euro to dollar is posted on the euro vs dollar site.
Greek parties face EU bailout deadline
(Reuters)
6 Feb 2012 at 8:48am
Reuters - Greece's coalition parties must tell the European Union on Monday whether they accept the painful terms of a new bailout deal to avoid a messy default that could ...
Euro, shares lower ahead of Greek high noon (Reuters)
6 Feb 2012 at 8:34am
Reuters - The euro and European shares retreated on Monday on nerves Greek would fail to come up with the political commitments needed to avoid a potential sovereign debt d...
Oil near $97 as traders eye Greek debt talks (AP)
6 Feb 2012 at 8:31am
AP - Oil prices fell to near $97 a barrel Monday in Asia amid investor concerns about Greek debt talks.
IMF warns Europe downturn could cut China growth (AP)
6 Feb 2012 at 8:26am
AP - A sharp downturn in Europe could cut China's economic growth rate nearly in half, the International Monetary Fund said Monday, adding to warnings about a possible seve...
Greek crisis talks for debt deal pushed to Monday (AP)
6 Feb 2012 at 8:00am
AP - Crisis talks on a debt deal for Greece among the three leaders of parties supporting the coalition government were suspended and will continue Monday.
France, German leaders meet amid euro, Syria crises (Reuters)
6 Feb 2012 at 12:43am
Reuters - The French and German leaders meet on Monday in Paris for annual talks in which they will seek further economic coordination in the crisis-hit European Union and ...
Police clear DC Occupy site, protesters look to a new day (Reuters)
6 Feb 2012 at 12:25am
Reuters - U.S. police officers cleared tents from an "Occupy" protest site in downtown Washington on Sunday, but demonstrators said even without the camp they would continu...
Obama says he deserves re-election, job's not done (AP)
5 Feb 2012 at 10:02pm
AP - President Barack Obama says he deserves re-election, despite the nation's economic troubles.
Pro-EU Niinisto wins Finnish presidency (Reuters)
5 Feb 2012 at 10:00pm
Reuters - Pro-Europe politician Sauli Niinisto won Finland's presidency on Sunday in an election that showed voters want to keep the country in the euro zone despite misgiv...
Conservative wins Finland presidential vote (AP)
5 Feb 2012 at 9:41pm
AP - A former finance minister won Finland's presidential election Sunday and will become the country's first conservative head of state in five decades.
