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EUR/USD · Fed · ECB

EUR/USD

The euro against the dollar: what moves the pair, why it mirrors DXY, and the data to watch.

EUR/USD is the price of one euro in US dollars. It sits at the centre of the dollar market: the euro is 57.6% of the US Dollar Index, and the BIS reports the US dollar on one side of 89.2% of all FX trades in April 2025. The pair mainly reflects the policy gap between the Federal Reserve and the ECB, relative growth and inflation, and risk sentiment.

Live chart

Live EUR/USD chart. Powered by TradingView.

What moves EUR/USD

The Fed–ECB policy gap

Decisions and guidance from the FOMC and the ECB Governing Council shape expectations for interest rates on each side. What matters is usually the change in expectations rather than the level of rates.

Relative yields, growth and inflation

Differences in inflation and growth between the United States and the euro area feed into rate expectations and, through them, the pair.

Data surprises on both sides

US inflation and jobs reports, and euro-area inflation and activity data, tend to move the pair when they differ from expectations.

Risk sentiment

The dollar's central role in global finance means broad risk-on or risk-off shifts can move EUR/USD even without euro-specific news.

How EUR/USD relates to other markets

These are tendencies observed in market data, not rules. They can weaken or reverse, especially during risk events.

  • US Dollar Index (DXY) Near-mirror image, because the euro is 57.6% of the index.
  • Gold (XAU/USD) A stronger euro often coincides with a weaker dollar, which has often been supportive for gold. It is a tendency, not a rule.
  • Oil (WTI, Brent) Both are affected by the dollar, but the link is variable and often dominated by supply and demand.

Where to check the current state

Marlin does not print prices or levels here, because they go stale. Use the live chart above and these official sources. Sources last checked .

What could change this view

  • A surprise from either central bank, or a change in guidance, would change the policy-gap picture.
  • If the dollar and the euro strengthen or weaken together against other currencies, EUR/USD may move little even in a big dollar move.
  • A liquidity or risk shock can override rate-based reasoning for a while.

Related to EUR/USD

Frequently asked questions

What does EUR/USD mean?

It quotes how many US dollars one euro costs. If the quote rises, the euro is strengthening against the dollar.

What moves EUR/USD?

Mainly the policy and interest-rate expectations of the Federal Reserve and the ECB, relative inflation and growth, data surprises on both sides, and risk sentiment.

Why does EUR/USD track the US Dollar Index so closely?

The euro makes up 57.6% of DXY, so EUR/USD movements account for most of the index's movements.

Is EUR/USD easy to trade?

It is one of the most liquid pairs, which is why it is a common study example, but leveraged trading still carries a high risk of loss. Practise on a demo account and size positions with a risk calculator.

How this page was prepared

Market-structure facts are quoted from the BIS Triennial Survey (April 2025) and ICE; the ranking of individual pairs in the 2025 survey is VERIFY CURRENT DATA and is deliberately not stated. Relationships are Marlin analysis, described as tendencies. Anything that could not be verified against a current official source is marked VERIFY CURRENT DATA. Read the full methodology and editorial policy.

Sources

Official or primary sources used for the facts above. Figures and terms change, so check the source before acting on them.

  1. ICE (Intercontinental Exchange)U.S. Dollar Index Contracts — FAQDefines the index, its six currencies and weights, and its single historical adjustment.Accessed
  2. Bank for International SettlementsOTC foreign exchange turnover in April 2025Triennial Central Bank Survey; published 30 September 2025.Accessed
  3. Bank for International SettlementsOTC foreign exchange turnover in April 2022Single-currency shares of trades in April 2022; published 27 October 2022.Accessed
  4. Federal ReserveFederal Open Market CommitteeRole of the FOMC; eight regularly scheduled meetings per year.Accessed
  5. Federal ReserveFOMC meeting calendars and informationOfficial schedule of FOMC meetings.Accessed
  6. European Central BankKey ECB interest ratesThe Governing Council sets the ECB's three key interest rates.Accessed

This content is provided for educational purposes only and is not investment advice. Trading involves risk, and past performance does not guarantee future results. Affiliate relationships may exist. Always conduct your own independent research before making financial decisions.

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