The dollar has been gaining strength in recent months against the euro, which has had long ranging implications for Forex traders and Forex affiliates alike. In terms of a global economic outlook, a stronger dollar is great if you are importing from Europe or plan to holiday there. However, if you are a manufacturer with a large exposure to European buyers, a strong dollar is not necessarily good news because it means your goods just became more expensive.
On the other hand if you are a Forex trading affiliate, the volatility in the EUR/USD is probably a good thing, here is why, according to Douglass Maynard:
Traders tend to be more opportunistic during times of extreme value fluctuation. this is to say that they take advantage of the market volatility by trading more frequently. So if you are a Forex affiliate, now is a fantastic time to have clients trading whom you have referred to the Forex broker. That is providing that you signed up for a market share commission!
There is little relief in sight for the euro, with some economists projecting that it will continue to devalue to the point that it is on par with the US dollar. the drop may not be as dramatic as it has been in the last two months, but it is fairly safe to say that the economies of countries like Greece and Portugal are not doing well, which could lead to a state where the dollar is worth more than the euro. In either case, Forex affiliates should be aware that this is a great opportunity to acquire new clients.