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 euro. The euro is a very special (some might even say unusual) currency because it is not the historic currency of any nation. Instead, it was dreamed up by western european bureaucrats after the formation of the EU Economic Community (now the European Union). It’s the second most heavily traded currency (after the US dollar), so it is a critical force in the foreign exchange market.

The EEC/ECU started as a method of lowering trade barriers between countries in Western Europe.