How to Trade EUR (EUR)

44 allied nations agreed to the Bretton Woods system in 1944, where the USD was convertible to gold at $35/oz and other currencies were pegged to the USD at fixed rates. This created global trade stability after WWII until the US deficit grew in the late 1960s.

On August 15, 1971, President Nixon announced the end of USD convertibility to gold. Bretton Woods collapsed, and world currencies began to float freely based on market demand, giving birth to the modern forex market.

The EU created the European Monetary System in 1979, linking the exchange rates of EU currencies to the European Currency Unit (ECU) to reduce volatility between member states. This led to the 1992 Maastricht Treaty, which agreed to create a single currency by 1999.

The Euro launched as an electronic currency on January 1, 1999, starting at 1 EUR = 1.1686 USD, replacing the currencies of 11 member states. Physical notes and coins entered circulation on January 1, 2002. Today, EUR/USD remains the most-traded pair in the $7.5 trillion/day forex market.

The Greek debt crisis heavily pressured the Euro as investors feared the collapse of the Eurozone. Mario Draghi’s 2012 'whatever it takes' statement helped resolve the crisis, demonstrating how political unity within the EU significantly impacts the EUR/USD rate.