EUR/USD overview
The euro versus the US dollar is the world’s most traded currency pair, accounting for roughly 22% of global FX turnover. Liquidity is deepest during the London–New York overlap (12:00–16:00 UTC), where spreads compress and intraday volatility peaks.
What moves EUR/USD
- ECB vs. Fed rate differential — the single most important macro driver. A widening US–EU yield gap typically pushes EUR/USD lower.
- Eurozone inflation & PMIs — released first week of each month. Surprises move the pair 30–80 pips.
- US NFP, CPI, FOMC — every first Friday (NFP), mid-month (CPI), eight times a year (FOMC).
- Risk sentiment — EUR/USD often co-moves with global equity risk-on/risk-off flows.
Trading sessions
| Session | UTC | Behaviour |
|---|---|---|
| Asia | 00:00–07:00 | Thin liquidity, range-bound |
| London open | 07:00–09:00 | Largest single move of the day, on average |
| London–NY overlap | 12:00–16:00 | Peak liquidity, news-driven |
| NY close | 20:00–22:00 | Position squaring, reversals common |
Typical spread
Top-tier ECN brokers quote EUR/USD from 0.0–0.4 pips raw + commission. Market-maker brokers typically show 0.6–1.5 pips all-in. Anything above 2 pips on EUR/USD is uncompetitive for an active trader.
