So you’re saying that because there are more buyers in eurjpy that will drive change the value of those currencies against the usd. Plausible logic but how could you ever come to such a conclusion? How would anyone know there are more buyers of eurjpy? The best indication would be the price but that wouldn’t be able to distinguish the price movement came from the majors or the crosses? And as you’ve sort of hinted not every trade involves usd so we could look at the volume of the pairs…… Well the majors predominantly trade on EBS and the crosses on Reuters and to my knowledge they don’t report volumes but even if they did FX is an OTC market so there are countless other platforms we would be missing out on. And I’m willing to break my trading rules here and put down my whole capital as wager that the volume of eurjpy will never on a daily volume will never exceed that of usdjpy eurusd combined.
I’m not saying looking at the crosses is useless but making that comment is!!! She also went to talk about other crosses against the jpy and although eurjpy does tend to trade in its own right if I rang an interbank and traded AUDJPY (not too exotic cross) it would always be done with the audusd and usdjpy traders….. why do you think the spread is so wide – it’s not simply that it is illiquid!
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