Euro trading against the dollar is the way that most foreign exchange traders start out, and yet in numerous cases they know just about nothing about the EUR. The euro is a very special (some might even say unusual) currency because it is not the historic currency of any country. Instead, it was dreamed up by european bureaucrats after the formation of the European Economic Community (now the European Union). It is the 2nd most heavily traded currency (after the USD), so it is a critical force in the currency market.

The EEC/EU began as a way of lowering trade barriers between countries in Western Europe. Over the years it has extended to include states in Eastern Europe and just as significantly, it has enlarged its temporary. Most major for EUR trading is the formation of the European Monetary Union (EMU) and the arrival of the EUR, that happened in the years from 1999 to 2001.