August 29, 2022

Forex Affiliate Alert: Profit from the Euro’s Depreciation & Volatility 

Profit from falling Euro

The euro recently experienced its biggest plunge since 2005, falling 10% against the US dollar. The two major currencies hit parity in the middle of July 2022, disrupting financial markets. The good news for forex affiliates is that they can profit from the falling euro. This blog post will explain how.

Why is the euro weakening?

The euro weakened significantly in the summer of 2022 for several reasons. Firstly, the global markets were uncertain as we emerged from the COVID -19 crisis and lockdowns of the past couple of years. Inflation is a huge concern in the US and UK, averaging 8.6% across the Eurozone. There is growing speculation that we are facing a new eurozone crisis. 

EU Inflation Figures – Summer 2022

  • EU Average 8.6%
  • Spain 10%
  • Greece 12%
  • Estonia 20%

The EU’s largest economy is Germany, and it effectively underpins the euro. Many analysts believe the German economy is at the edge of serious difficulties. Germany is facing a massive energy crisis this winter due to overdependence on Russian oil and gas. 

If the threat to Germany’s manufacturing base wasn’t serious enough, summer drought is drying up the River Rhine – Germany’s industrial transport artery. Closure to shipping is choking one of the major EU supply chains. The disruption to river transport could knock half a percentage point off Germany’s 2022 economic growth.

The common currency is at an almost record low and shows no immediate signs of bouncing back. This may aid eurozone exports in the short term but will create pain points, particularly if staple food commodities and energies continue to rise in the autumn and winter of 2022. Analysts wonder if the euro will slide further as the US continues to prop up the dollar. We may see a new reality: the euro is worth less than the USD.

How Can Forex Affiliates Profit from a Weak Euro?

When considering forex markets, it’s crucial to begin with a caveat. The global currency markets are inherently volatile and unpredictable. The same rules that apply to investors also apply to forex affiliates:

  • It’s possible to make considered predictions about the future performance of currencies (based on their past performance). 
  • We can make logical assumptions about how currency pairs like the EURUSD will respond to current market conditions.

Any assessments that we make are only possible outcomes – not firm predictions. However meticulous our analysis, unexpected events can send any currency into a new trajectory. 

3 Key Principles of Forex Affiliate Marketing

When you promote online trading as a forex affiliate, there are three fundamental principles that you need to understand when you plan your affiliate marketing campaigns and strategies. 

  1. Market uncertainty and unpredictability is an advantage
  2. When one asset, e.g., the euro, declines, others will always rise
  3. Online traders can profit from assets that are falling in value.

As soon as you understand these three principles of forex affiliate marketing, you can make any bear market or public concerns about currencies work to your financial advantage. Expert forex affiliates can consistently earn high commissions in all market conditions!

Read our related blog post on how to utilize a bear market

How Can Forex Affiliates Promote the Euro in 2022?

The global forex markets generate daily trading volumes that run into trillions of dollars. Currency crashes are major news events that impact everybody, from world leaders and major investors down to independent online forex traders (your target traffic). 

The value of a country’s national currency affects everything from the cost of its exports, its ability to purchase vital commodities, and its tourist industries. Politicians and economists are constantly trying to achieve optimal currency prices against the competing demands of industry and domestic politics. 

When you promote forex trading as an affiliate, you need to follow the news and create a multi-tier strategy. Much will depend on your target traffic – you must be clear about your website traffic and social media reach. You can prioritize your efforts if you clearly understand who you are reaching with your campaigns (and their potential CPA/Hybrid CPA/RevShare value).

  • Are you aiming to convert first-time traders or people with previous experience in online forex trading? 
  • Is your target traffic ready to sign up with a broker, or are they just exploring the possibility of becoming online traders?
  • Can you target people who haven’t previously considered online forex trading? 

When you understand your own goals, you can prepare your marketing campaigns. If you don’t know your target traffic (or want to cast a wide net), you can create various campaigns and test the performance of different marketing materials.

Remember: Your goal is to earn high commissions from your partner program. Every social media post, blog post, guest post, marketing creative, Google Ad, and YouTube/TikTok film represents an investment of time, energy, money, and other resources. You need to see a return on each investment. Effective analysis and optimization are vital!

Read our related blog post on how to promote links via social media

Key Forex Affiliate Marketing Strategies

When you aim to earn high affiliate commissions promoting euro trading (or focusing on the euro’s decline), one of your best strategies is to engage trader interest and curiosity with provocative questions or tidbits of valuable information. This is particularly effective on social media, where you have limited space for text and a very short window of opportunity to capture reader interest. You have three goals: 

  1. To persuade readers to click on your forex affiliate links.
  2. To gain followers and subscribers to your profiles, pages, and channels
  3. To encourage readers to like and share your posts until they go viral

Almost everybody loves getting something for nothing (even if we don’t consciously realize it). We also hate the idea of missing out on something good. Successful forex affiliates are skilled at incentive-based marketing. You’ll boost your click rates exponentially if you can offer the right incentives. 

An incentive could be something as simple as the chance to see which assets are expected to rise as the euro falls. A link to a blog post explaining why the latest euro crash creates powerful trading opportunities is also a powerful incentive. Offers like “5 Free Trading Strategies for the EURUSD” will also get clicks. It’s important to always place positive spin on bad news and offer opportunities

Short Selling, Put Options, and CFD Trading

Sell and Put options are a gift for forex and CFD affiliates. You need to hammer home the message that when assets like the euro fall, shrewd online traders continue to profit from them. It’s essential to explain the underlying principles of CFD trading in your educational content. 

Many new online traders don’t understand that they can potentially profit from CFD trading in any market conditions. Emphasize the speed and convenience of CFD trading, especially during periods of volatility and adverse market conditions. 

If the euro is trending downwards, challenge traders to try and predict how far it will fall. Ask your followers and page visitors if they are making money by short selling or holding out for a trend reversal. You’ll almost certainly get more followers and conversions if you can stimulate engagement and create an online debate. 

Promote Other Assets in your Affiliate Campaigns

Major online brokers like AvaTrade offer traders various financial assets and financial instruments. If the euro continues to fall in 2022 (or levels out and becomes stagnant), you can also promote other assets. Potential forex traders can focus on other majors and either avoid the euro altogether or trade against it. 

The global commodity markets will likely be highly volatile in Q3 and Q4 of 2022 and 2023. Experienced forex affiliates are already building marketing campaigns around energies, metals, and food staples. The fact that currencies like the Canadian dollar and Australian dollar are closely linked to commodity prices is an excellent initial marketing bridge. 

Other assets with a high affiliate marketing value in 2022 include the Swiss Franc (CHF), Gold, Bitcoin, and the Asian majors. It’s also worth watching the US stock market. A falling euro can be a great tool to capture the attention of potential traders – and then steer them to other assets. 

Making Money as a Forex Affiliate in 2022

Take Away Points

  1. A falling euro is a high-value news event. You can benefit from public interest.
  2. Explain to traders that they can potentially profit from the euro when it falls in value. 
  3. Add incentives to all your marketing creatives to improve click rates.
  4. Always try to stimulate online discussions and debates. Respond to comments and questions promptly.
  5. Explain the potential benefits of CFD trading in a bear market. 
  6. Use the falling euro to promote other assets and instruments. 

The most important takeaway is that you should always work with a professional partner program that promotes an established, regulated online broker. Major brokers like AvaTrade have the liquidity, resources, and client bases to prosper during challenging market conditions. 

A top-quality partner program like AvaPartner will help your marketing campaigns with free, high-converting creatives and will allow you to negotiate a profitable, tailored commission plan. 

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