What is EUR/USD — plain English
EUR/USD is the price of one Euro in US Dollars. If you see 1.08, that means one Euro buys exactly $1.08. When the number goes up, the Euro is getting stronger. When it goes down, the Dollar is getting stronger. That is all it is.
What makes EUR/USD move
US Federal Reserve interest rate decisions
European Central Bank (ECB) rate decisions
US jobs report — Non-Farm Payrolls, first Friday of every month
US inflation data (CPI) released monthly
European inflation data
Political crises in Europe or the US
Wars, sanctions, or major geopolitical events
GDP growth data from the US and Eurozone
The single biggest driver is interest rates. When the US raises rates and Europe does not, money flows into the Dollar. EUR/USD falls. When Europe raises rates and the US does not, EUR/USD rises. Everything else is noise compared to this.
What happened at real events
These are actual price movements at real events. Not simulated.
March 20, 2024
Fed keeps rates unchanged at 5.25% — signals cuts ahead
Before
1.0850
→
After
1.0920
+70 pips ↑
Dollar weakened because the Fed signalled rate cuts were coming. Lower future rates = less attractive to hold Dollars = Euro gets stronger.
June 6, 2024
ECB cuts interest rates for first time since 2019
Before
1.0890
→
After
1.0780
-110 pips ↓
Euro dropped because ECB cut rates while the Fed held. Europe got cheaper, the US stayed expensive. Money moved to the Dollar.
November 5, 2024
Donald Trump wins the US Presidential election
Before
1.0950
→
After (24h)
1.0720
-230 pips ↓
Dollar surged. Markets expected Trump to impose tariffs on European goods, hurt European exports, and boost the US economy. Euro fell hard.
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Key dates coming up
These events reliably move EUR/USD. Mark your calendar.
| Event | Frequency | Typical move |
|---|---|---|
| US Non-Farm Payrolls | First Friday of every month, 13:30 UTC | 30–100 pips |
| Fed interest rate decision | 8 times per year | 50–200 pips |
| ECB interest rate decision | 8 times per year | 50–150 pips |
| US CPI (inflation) | Monthly, around 12th of month | 30–80 pips |
| Eurozone GDP | Quarterly | 20–60 pips |
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