Euro (EUR)
The Euro (EUR) is the shared currency across the 19 states that make up the Eurozone. It’s the world’s second-largest reserve currency and second most-traded currency after the US Dollar (USD).
Key Info
Currency code: EUR
Currency symbol: € (Euros), c (cents)
Nickname: The single currency
Affiliated central bank: European Central Bank (ECB)
Key currency pairings: GBP/EUR, EUR/USD
Denominations:
Coins: 1c, 2c, 5c, 10c, 20c, 50c, €1, €2
Notes: €5, €10, €20, €50, €100, €200, €500
Where is the Euro Used?
The Euro is the official currency of the Eurozone, which comprises 19 of the 27 EU member states, including Germany, France, Italy and Spain. It’s also used in Andorra, Monaco, San Marino, the Vatican, Montenegro and Kosovo, as well as in the British Overseas Territory of Akrotiri and Dhekelia and in several special EU territories.
Around a dozen currencies around the world – including in Europe, Africa and Oceania – are pegged to the Euro, meaning their value is tied to the value of EUR.
What Affects EUR Exchange Rates?
A number of different factors affect the Euro, and not all of these stimuli are set in stone.
For instance, prior to the war in Ukraine the Euro was viewed as a safe-haven currency; this means investors would buy the Euro in times of uncertainty. Since Russia’s invasion, EUR seems to have lost its safe-haven status (at least temporarily).
However, there are three key things that tend to be reliable triggers of EUR movement.
European Central Bank (ECB)
The European Central Bank governs monetary policy in the Eurozone. Policymakers meet every six weeks to decide on monetary policy, which can have a big effect on the value of the Euro.
The most important policy decision is the interest rate. Generally speaking, when the ECB raises interest rates the Euro will rise; if it lowers interest rates, the Euro will fall.
Markets also tend to price in what they think the bank will do in the future. So if the ECB signals that it may raise rates at upcoming meetings, EUR will likely go up.
Economic Data Releases
EUR investors also keep a close eye on the latest data releases from the Eurozone. Typically, reports from the Euro area have the biggest impact the single currency, although some releases from Germany – Europe’s largest economy – can also cause movement.
Data releases help markets gauge the health of the Eurozone economy, and often the likelihood of a rate hike or cut from the ECB. The most impactful reports are the PMI surveys, GDP and inflation.
US Dollar (USD)
EUR/USD is the world’s most-traded currency pair. As a result, the Euro has a negative correlation to the US Dollar – when people buy US Dollars, they tend to sell Euros. This means that the Euro often rises when the US Dollar falls, and if the US Dollar strengthens then the Euro tends to weaken.
Latest Euro News
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Pound euro exchange rate flat ahead of BoE speech Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 22 2024Pound euro exchange rate muted amid data-light morning The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning amid an … read more
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Pound euro exchange rate muted despite underwhelming German data Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 21 2024Pound euro exchange rate flat following German PPI The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning following the … read more
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Pound euro exchange rate underpinned by UK retail sales Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 18 2024Pound euro exchange rate reaches two-and-a-half year high following UK retail sales The pound euro (GBP/EUR) exchange rate is trading near a … read more
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Pound euro exchange rate muted ahead of ECB interest rate decision Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 17 2024Pound euro exchange rate flat ahead of expected ECB rate cut The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning as … read more
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Pound euro exchange rate slumps amid cooling UK inflation Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 16 2024Pound euro exchange rate weakens following UK CPI data The pound euro (GBP/EUR) exchange rate is losing ground this morning following the … read more
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Pound euro (GBP/EUR) exchange rate stable as UK labour market cools Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 15 2024Pound euro exchange rate rangebound following UK employment data The pound euro (GBP/EUR) exchange rate is trading in a narrow range this morning as … read more
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Pound euro exchange rate muted ahead of BoE speech Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 14 2024Pound euro exchange rate flat amid minimal data The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning as a data-light … read more
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Pound euro exchange rate muted following UK GDP Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 11 2024Pound euro exchange rate flat despite upbeat UK GDP The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning following the … read more
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Pound euro exchange rate flat as ECB cautious to declare victory over inflation Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 10 2024Pound euro (GBP/EUR) exchange rate retraces steps following ECB minutes (Updated 14:15, 10/10/24) The pound euro (GBP/EUR) exchange rate trimmed its … read more
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Pound euro exchange rate muted despite better-than-expected German trade data Euro (EUR) GBP to EUR Pound Sterling (GBP)
October 9 2024Pound euro exchange rate flat following German balance of trade The pound euro (GBP/EUR) exchange rate is trapped in a narrow range this morning … read more