EUR/USD is the most widely traded currency pair in the forex trading market accounting for some 50% of trades. This implies the tightest spreads and may hence be one of the better cross pairs to start trading. The pair is fairly volatile and can reasonably move 50 to 60pts even when there's nothing going on. Obviously news from the Eurozone or the USA economy will move this pair.
EURO is the second largest currency to be in circulation after the US dollar. Ever since the time the Euro got introduced, it has gone to get acceptance and approval to become official currency for 16 countries that comprises the Eurozone. Euro is the second largest reserve currency after USD, and Eurozone is the second largest economic region, again second to the American economy.
This is the largest currency replacement, the world has witnessed till date. In 2002 Euro was adopted by 16 European Union Countries replacing their national currencies.
The European countries not using the Euro include Denmark, Sweden, and the U.K. Euro is supervised and looked after by the European System of Central Banks, which includes European Central Bank, and central banks in Eurozone.
European Central Bank, also referred in the trading circles as ECB is the one and only authorized body that has the power to design monetary policy, and has its headquarters in Frankfurt, in Germany.
All other members of the ESCB participate through printing, minting, and distribution of notes and coins.
EUR USD is great for currency traders who are jus starting out since he currency moves quite at a slow pace as compared to the other major pairs. Also, the EUR USD is correlated in a negative way to the USD/CHF & it is related to GBP/USD in a positive manner.
