Quote:
Originally Posted by stucros
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?
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I sit not 20 feet away from a guy who spends his day talking with forex dealers - the folks who actually do the real volume trading, not the stuff we puny little retail accounts do. If he tells me that buying in EUR/JPY is driving the market then I'll believe him because he's getting it from the source. I wouldn't be at all surprised if Kathy's comments were based on the same sort of "flows" information.
Her comment is not a useless one. We all know (or should) that sometimes the USD drives the market and no matter what may be happening in other currencies, the factors influencing the USD will dominate. At other times that isn't the case. Knowing which type of market we're in can make a big difference in understanding current market conditions and trading them effectively. Kathy's comment points out the fact that right now we are not in a USD drive environment.