Thread: Is this common?
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Old 03-22-2007, 10:28 AM
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rhodytrader rhodytrader is offline
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There is a much simpler explanation than talking about corellations.

EUR/USD and GBP/USD both represent non-USD based pairs. That means they will rise as the USD falls, and vice-versa.

USD/JPY and USD/CHF are USD based pairs. That means they rise when the USD rises, and fall when it falls.

When something happens that impacts the USD specifically - like a data releases, news item, interest rate announcement - you will see the sort of move you saw. If it's a good thing for the USD, EUR/USD and GBP/USD will fall while USD/JPY and USD/CHF rise. If it's bad news things will be reversed.
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