The euro is the official currency of the European Union and is used by 19 of its member countries. It is the second-largest reserve currency in the world and is a major component in the international financial market. Investors use the euro for hedging against changes in other currencies, diversifying their portfolios and making cross-border investments. The euro is used to trade commodities and is the base currency for pricing most global commodities. It is also the second-most widely traded currency in the Forex market, which is the largest and most liquid financial market in the world. This makes the euro a key component in international investments and financial markets.