EUR/USD follows US stock market

Sorin · Feb 12, 2008

Explain me please, why does cross EUR/USD just repeat all moves of stock US indexes? If Dow goes up then EURO becomes stronger.

Reaver · Feb 12, 2008

My view is that now most stock "growth" is merely inflation due to ridiculous rate cuts, etc....so when the stock market goes up, the USD value goes down...

So if you're trading the Euro against the US Dollar, when the Dollar goes down, the Euro goes up.

Sorin · Feb 13, 2008

However yen movement looks logically - yen drops when US stockmarket is rising.

c.chugani · Feb 13, 2008

Quote from Sorin:

However yen movement looks logically - yen drops when US stockmarket is rising.

correct. due to intense carry trade.

jsmooth · Feb 13, 2008

YEN: tons of stops are layered above that 108 handle....we may be off to the races to 110 if we can break that

crgarcia · Feb 13, 2008

USD/JPY follows the stock market due to carry trade, as some have ponted out.

EUR/USD actually follows oil prices to some extent. Compare charts and judge by yourself.

Bigpipn · Feb 13, 2008

-Pull up a quote for U/J
-Trade U/J from looking at the ES 1m or 5m chart

I use Lag RSI and slope direction to filter out the noise and it works like magic.

Free $$$$

Sorin · Feb 13, 2008

Thanks for explanations.