The EUR/USD is the most traded currency pair in the world, representing the euro against the U.S. dollar. Its popularity stems from the size of the EU and U.S. economies, offering high liquidity and tight spreads. The pair’s volatility is influenced by economic data releases, interest rate decisions from the ECB and Fed, and geopolitical developments. Traders favor it for both short-term strategies and long-term analysis. As a benchmark for global forex trading, it reflects broader market sentiment.