EUR/USD is the forex ticker that tells traders how many US Dollars are needed to buy a Euro. The Euro-Dollar pair is popular with traders because its constituents represent the two largest and most influential economies in the world. Follow real-time EUR/USD rates and improve your technical analysis with the interactive chart. Discover the factors that can influence the EUR/USD forecast and stay up to date with the latest EUR/USD news and analysis articles.
The most traded currency pairs in the world are called the Majors and the EURUSD leads this group as the most traded pair in the world. This pair represents the world two largest economies and has faced most volatility since the inception of the euro in 1999.
The US central bank is called the Federal Reserve Bank (commonly referred to as “The Fed”). The USD is the most traded currency in the forex market and can be paired with all other major currencies. Common names for the USD include the greenback, buck, green, dough, smacker, bones, dead presidents, scrillas, and paper.
- Name: US Dollar
- Symbol: $ cent: ¢
- Minor Unit: 1/100 = cent
- Central Bank Rate: 2.00
- Inflation: 2.10%
- Nicknames: greenback, buck, green, dough, smacker, bones, dead presidents, scrillas, paper
- Coins: Freq Used: 1¢, 5¢, 10¢, 25¢, Rarely Used: $1, 50¢
- Banknotes: Freq Used: $1, $5, $10, $20, $50, $100, Rarely Used: $2
- Central Bank: Federal Reserve Bank Website: federalreserve.gov
Importance of the US Dollar
The US Dollar is the most commonly converted currency in the world and is regularly used as a benchmark in the Forex market. As the dominant global reserve currency, it is held by nearly every central bank in the world. Additionally, the Dollar is used as the standard currency in the commodity market and therefore has a direct impact on commodity prices.
Silver and Gold Standard in the US
For years, the United States attempted to make a bimetallic standard, starting by adopting a silver standard based on the Spanish Milled Dollar in 1785. However, silver coins soon left circulation becoming completely suspended by 1806. By this time, most countries had already begun to standardize transactions by adopting the gold standard, meaning that any paper money could be redeemed by the government for its value in gold. The Bretton-Woods system was adopted by most countries to set the exchange rates for all currencies in terms of gold. Since the United States held most of the world’s gold, many countries simply pegged the value of their currency to the Dollar. Central banks maintained fixed exchange rates between their currencies and the Dollar, turning the US Dollar into the de facto currency of the world. In 1973, the US finally decoupled the value of the Dollar from gold completely.