As the saying goes – The grass is always greener on the other side, this may never be truer as far as Binary Options go than in the case of this currency pairing.
Each side of the pairing brings with it more than a few strong suites but also carries quite a bit of financial baggage which can, at times, hinder their respective economies and as a result trade in this (or any other) currency binary options which you might be considering trading.
The Euro brings the financial might of 18 nations using it as a primary currency, and 28 nations in total contributing to its economy, making it a financial superpower second to none.
The Euro also brings with it a great variety of industries and products which it can export to other nations – from a massive variety of agricultural products and produce, to sophisticated cars, through high tech and computing giants all the way to massive natural resource conglomerates.
The UK however, despite being much smaller physically, financially and in terms of inhabitants does not come empty to the table; in fact, many consider it to be a premier financial state for more than one reason.
To begin with – the UK is home to more than one of the world’s largest banks, in fact, the UK’s top 5 banks list assets in excess of 6,000 Billion British pounds, Only 4 nations have more banks listed in the world’s 100 largest banks, and all of them are substantially bigger than the UK in terms of size & population.
It is also entirely possible that quite a bit of the UK’s financial success can be attributed to its colonial efforts in centuries past, which have left impressions on vast nations from many corners of the globe, from Africa to Australia and America and points between.
But as we’ve said before, each side of this pairing is also not without its faults, where the EU falls is the very point which makes it strong – the interconnectedness of its nations to a single block can sometimes be harmful to the block in its entirety, as was the case with Greece and Spain a few years ago.
The UK however is highly dependent on the success of the GBP in global markets to help maintain its financial position, as a rather small nation, with limited resources and land mass there is only so much the UK can produce on its own, so for a great many things, it relies on imports, and should the Pound collapse the results for the UK economy might be quite serious.
With all of this being said, trading in Binary options on this pairing is not as complex as it may sound, as the pairing tends to stay quite solid and is not extremely volatile.
It might not be the best option if you are seeking to reap great rewards in a hurry, but if you’re looking to position yourself cautiously and react to long terms trends, this might be the pairing for you.
So, as is true for most other pairings – pay attention to any and all news regarding interest rates, jobs created or lost and any other major financial report coming out of the EU or UK, and pretty soon, if all goes well, you’ll be able to impress your neighbors with your rising gains, and make sure that the grass will be greener on your side!