European Currency Pairs
The foreign exchange market works in currency pairs, whereby the value of one currency is paired with and set against the value of another to gauge their relative strength to one another. A shift in the value of either currency in the pair changes the relation between the pair and creates trading opportunities. If you log in to our trading platform in fact, via your Band De Binary trading account, you will find live charts that record the drops and rises in the prices of over twenty currency pairs. European currency pairs, specifically, are the pairs that include at least one European currency in their pairing.
Currently, there are six European currencies: the Euro (EUR), the British Pound Sterling (GBP), the Swiss Franc (CHF), the Swedish Krona (SEK), the Norwegian Krona (NOK), and the Danish Krone (DKK). Three of these, namely the euro, the British pound, and the Swiss franc, also fall within the Major Currencies umbrella, which encompasses the most traded currencies of the market. Currency pairs that include any of these three currencies enjoy high popularity in the markets and constitute a large chunk of global daily trade. The European trading session, moreover, which overlaps with both the Asian and the U.S. sessions for a few hours at the beginning and the end of the day respectively, exhibits the most volatile conditions, and consequently the most trading opportunities, for binary options traders that follow the currencies of the old continent.
The values of currencies fluctuate constantly, sometimes dramatically and sometimes imperceptibly, depending on various national and international events with economic outcomes. Investors need to monitor the events that affect their trading currency in order to place educated trades that will finish in the money. If you are interested in trading the euro, for example, you should know that power behind the 17-nation currency largely comes from the euro-zone’s largest economies, namely those of Germany and France. Thus, in addition to general European events, such as decisions taken by the European Central Bank, you also need to keep an eye on German and French reports, like the German ZEW economic sentiment. If the Swiss Franc is your currency of interest, to give another example, then gold should top your list of assets to monitor as the Swiss currency is backed predominantly by this precious metal.