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The Euro (EUR) is the official currency of the Eurozone, a monetary union with 19 out of the 28 member states of the European Union (EU). It was established in 1999 with the intention of creating a single economic block that shared a common currency among all of its members. 

The US Dollar (USD) is the world's most traded currency, and the Euro claims the second spot, according to a Central Bank Survey conducted in 2016.

The European Central Bank (ECB) is the steward of the euro and uses monetary policy to drive inflation and interest rates to desired levels that also support economic growth and job creation in the EU.

The EU eventually became the second largest economy in the world with a consumer base of over 500 million with the euro rising to the rank of being the second most traded currency on the global market. Therefore, owning the euro allows traders to have exposure to the EU’s market and possess a highly liquid currency. 

What moves the Euro?

1. Eurozone Political Risk

Risk in political stability plays a significant role in influencing the euro price trend. Leading up to the Great Recession in 2008, a debt crisis was brewing in Europe. When the economic shock hit Europe, a few Southern European states (such as Greece) who were already burdened with high levels of debt, became a political and economic liability for the whole union.

There were doubts on the ability of these states to pay back their debt, so monetary authorities such as the ECB and IMF issued bailouts to these states in an effort to prevent a regional economic collapse. Even though loans were issued, the economic impact of this crisis has had broader political implications that have exerted a significant influence on the price of the euro.

The recent emergence of Eurosceptic nationalist movements across Europe has caused the currency to depreciate as markets became uncertain as to whether the Eurozone would be pushed into a deeper crisis than before.

2. ECB Monetary Policy

The ECB