As it turns out not only oil, but other assets can have hidden dangers as well. Of course, trading as a whole is dangerous and risky, but in every asset risk is hidden in something else, something different.

That is why today I decided to look at the hidden dangers of euro.

1. Too many players.

Just like on case with oil, with euro the problem is the fact that it can be ruled and regulated by several countries. And it can be influenced by these countries as well. Every time a new country enrolls into Eurozone, we see the weakening of euro – just because it gets once again influenced by a weaker peer. Which is not that goof got a currency with so many weak spots.

2. Dollar and pound.

While with dollar the situation is clear – the relations of these two currencies are pretty much like the relations of dollar with any of the currencies – one grows, the other one falls, with pound it is more complicated than that. Essentially right now we are looking at a minefield. Everything depends on how good and smooth Brexit will go – that is what the future of euro came to depend on.

I would argue that pound is the most dangerous rival for euro at the moment.

3. Weaker countries.

As I already said, Eurozone heavily depends on all of its members. And, just like in any community there are weaker members of it. Look at Greece, the economy of which is so weak that is has barely gotten out of the financial crisis of 2008… 11 years after that.

There is also of course Portugal and Spain. Their economy id also much weaker than that of France and of course Germany. Countries with weaker economy are what tugs euro lower and lower, although the currency manages to stay afloat, which brings me to my next point.

4. It is supported by one economy only.

The biggest danger of and for euro is the fact that it is supported by only one country – Germany. Of course there are other strong economies in the region, but essentially Germany is the only one supporting the currency at the moment. Once German economy slows down or loses points, we see dips in the performance of the currency. That is the law.

And that is the biggest danger that we may face while trading euro – the fact that there is a lot of eaters and only one cook. That is the first thing we need to consider when trading euro – the fact that we are relying on only one economy to carry all of the market.