Although the Euro is the dominant currency of mainland Europe and one of the most traded currencies on the foreign exchange (forex) market, it’s not the only option for traders looking to make a profit or protect their investment. Outside of the Eurozone, several major currencies are worth looking at, including a couple of the most popular selections in the world. Next time you’re making a trade, why not look beyond the Euro and consider one of these possibilities instead?
The UK may have left the EU, but the country is still geographically part of Europe, and the Great British Pound (GDP) is still widely accepted all around the planet. The oldest currency still in circulation, the pound is the fifth strongest in the world and the fourth most traded, accounting for around 12.8% of daily trades on the forex market. The third most traded currency pair is GBP/USD, with the pound generally being worth about $1.30. This pair is known as “the cable”, reflecting the strong historical relationship between the two nations.
Considered the seventh strongest world currency, the Gibraltar Pound (GIP) is worth about $1.32 and can be exchanged for GBP at face value. Although GIP is only accepted on the Island of Gibraltar, its status as a British overseas territory with a healthy economy based mainly on financial services make it a popular trading option. Search out independent review sites to find a reliable broker that will let you trade in GIP; this Cedar FX review is an excellent place to start.
Known worldwide as a safe-haven currency, the Swiss Franc (CHF) is the national currency of Switzerland and Liechtenstein. It generally outperforms the dollar at 0.90 CHF to 1 USD. Switzerland is known as one of the most stable and wealthy countries in the world, with low debt and a strict monetary policy. Its long association with banking and financial services has also helped keep the Swiss Franc in the top ten strongest global currencies.
Although not as widely traded as the above big three, the Swedish Krona (SEK) is still an excellent alternative to the Euro for forex traders. Traditionally the Krona, or crown, has been considered a safe bet due to Sweden’s small but relatively advanced economy and the fact that the country is home to several multinational corporations. Although the currency has lost some ground in recent years due to global economic uncertainty and trade wars, it is expected to bounce back before too long.
While Russia’s status as a European country may be debatable, there’s no denying that the rouble is a popular trading currency, often paired with USD or GBP. While susceptible to internal unrest, Russia’s position as a global superpower and major oil supplier means that the rouble is always worth considering as a trading option. If you’ve got a high-risk tolerance, then its volatility could be turned to your advantage.
The relative value of currencies changes all the time, which is how profits are made or lost. However, it’s undoubtedly a good idea to consider other European currencies besides the Euro when you’re looking at trading pairs.