Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin. 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. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. All forms of investments carry risks and trading CFDs may not be suitable for everyone. 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.
Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. 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.
Open a free, no-risk demo account to stay on top of index movement and important events. 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. 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. FTSE 100 from 4 points and more 24-hour markets than anywhere else.
EUR/USD, EUR/GBP and GBP/USD bid ahead of US NFPs
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. You could say that the euro and the US dollar broker finexo 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).
Use this to see how IG client accounts with positions on this market are trading other markets. Data is calculated to the nearest 1%, and updated automatically every 15 minutes. 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).
In 2016, when Britain voted to leave the EU, EUR/USD tumbled. 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. The best EUR/USD trading strategies to use will depend on your personal trading style.
Euro and US Dollar events
Get The Week Ahead, our free rundown of the coming week’s market-moving events and indices pairs to watch, delivered to your inbox every Sunday. 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. 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. For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.
- Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage.
- You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
- 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.
- For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.
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. While this may increase your profits, it could also magnify your losses.
Trading signals
Find out more about why you should trade indices with IG. EUR/USD is referred to as ‘euro-dollar’ because it’s the pairing of the euro – the currency of 19 European countries – and the US dollar. EUR is the currency code for the euro and USD is the currency code for the US dollar.
There are many forex strategies to choose from, enabling you to determine when it’s time to enter and exit a trade. These include the RSI indicator strategy, momentum indicator strategy and breakout trading strategy. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument.
If you think that the euro will decrease in value against the US dollar, you would sell the pair (go short). Your profit or loss will depend on how accurate your prediction is, meaning it is possible to profit whichever way the market moves. The best time to trade EUR/USD is when both markets are open (between 1pm and 4pm UK time). During this open period, EUR/USD tends to be more liquid and spreads are generally tighter. Outside of these times, there tends to be more volatility, octafx broker reviews which could also provide opportunities to profit. One of the most closely watched currency pairs today is EUR/USD – also called the euro-dollar.
This forex pair is particularly interesting in light of Brexit and the US-China tensions. Find out how you can take advantage of EUR/USD price movements with IG. Open a free, no-risk demo account to stay on top of forex movement and important events. The percentage of IG client accounts with positions in this market that are currently long or short.
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. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Improve your trading skills by working through interactive courses on the IG Academy app. If your aggregate position is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops.
IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No.