Pairing – The amount of United States dollars (USD) that one can buy for every European Euro (EUR).
EUR – World’s second most traded currency
USD - World’s most traded currency
- Reserve currency – The US dollar is used by many as a reserve currency, with the majority of countries keeping a supply of dollars for security in the event of adversity. This can affect this pairing heavily, especially when one considers the doubt and speculation around the long-term validity of the euro as an option for many of the countries involved.
- Commodities – Demand for the dollar is also high because all major commodities globally are priced in dollars, oil and gold for example. Any nation that wishes to buy these commodities must first exchange their currency for the dollar, which means demand is always high for the currency.