This represents the number of American Dollars needed for buying a Euro, and is the most widespread currency pair traded worldwide. Per the Bank of International Settlements, it takes around 28% of the turnover on the FOREX.
The Euro has been in circulation since 1999, when it replaced the ECU, and it has become a very important currency on the global financial market. Both the USD and EUR are affected by economic indicators; however, the USD can be influenced by the changes in commodity prices too. This is because most commodities are traded in USD, bringing a greater volatility to the currency pair.
Both are considered reserve currencies, and most central banks hold these currencies to manage the exchange rate or settle international trades. Another role of reserve currencies is that they can be used as an additional diversification tool at the time of international recession.Trade EUR=