Effects on Currency

To me this sounds like a stupid question but i need to ask anyway.

Like how gold and the stock market are usually inversely related, if you were to focus on one currency like EUR/USD is there anything besides interest rates and banking news that is inversely related to the US dollar? Thanks.

Point of note: EUR/USD is not “one currency”. It’s the relationship between two of them.

As for inverse relationships to the dollar, it varies. In the last year alone it’s been the case where sometimes strong economic data was bad for the dollar and at other times it was good for it.

Nicely said.

Best Regards,
Matt Jones .

Most of commodities are related since they are measured in dollars, a stronger dollar will mean lower commodities prices in dollars, a weaker dollar will mean higher commodities prices in dollars.

Also you need to check fundamentals like budgets, unemployment, inflation/deflation, growth, debt, etc.

Sometimes.

Commodities have their own supply/demand considerations which cause them to rise or fall in price regardless of what is happening in the dollar. Just in the last few months we can see a varying dollar/oil linkage where in December and January they were inversely related, but in February oil and the dollar have both risen in value.

Oil was my main question, that is something in my Econ class we have been talking about a lot. (Not whether it effected the U.S. Dollar) but that is just something i need to do more research on. Thanks Rhodytrader.

-Kyle