Euro / US DollarEUR/USD

EUR/USD is the most-traded currency pair in the world, showing how many US dollars one euro is worth. It pairs the two largest economies — the Eurozone and the United States — so it is highly liquid and usually carries the tightest spreads of any pair. Its price is driven mainly by the interest-rate gap between the European Central Bank and the US Federal Reserve, plus inflation and growth data. It is most active during the London and New York sessions. Trade it with a clear risk plan, as leverage can amplify losses.