USD forex eur usd live quote with lows, around 1. TNS UK inflation expectations for next 12 months at 2.

19 European countries that vary quite a bit from each other share the single currency. The key countries are Germany, France, Italy and Spain. The US dollar is the reserve currency of the world. A wide trade surplus, originating mostly from German exports, means that funds are flowing into the euro area. When markets are calm, this influx pushes the common currency higher. However, the eurozone has its share of economic and political issues and speculation takes its toll.

The euro debt crisis engulfed Greece, Portugal, Ireland, Italy, and Spain. While the worst may be behind us, it is always looming. The leadership of the European Central Bank and President Mario Draghi helped stabilize and even save the euro. USD trading is often choppy, especially when it is confined to narrow ranges. When the pair is in trend, past technical lines, even those from 2003, are respected quite nicely. USD recent moves The euro-zone economies are growing at a robust pace in 2017.

Unemployment is falling and even core inflation is finally rising albeit temporarily All this has led to optimism that sent the euro higher. The ECB will halve bond-buys to 30 billion euros from January 2018. However, it left the door open to extending the QE program beyond September, and this hurt the euro. A weaker euro makes exports more attractive and pushes imported inflation higher. Draghi is happy with growth but worried about inflation. The political uncertainty in Germany is becoming an issue after inconclusive elections in September.

A fresh round of elections joins the crisis in Catalonia and the political instability in Italy. In America, hopes for fiscal stimulus faded early in the year, but are now on the rise again, with Trump’s tax plan. The Federal Reserve has maintained its plan for three rates hikes in 2017 despite lower US inflation. USD continued suffering from Italian politics once again after a short respite.