Hello
jase-newbie
Is there a relationship between stock market indexes and the strength or weakness
of currency?
thanks
jase
Yes jase, the indexes can be a tell tale for risk aversion, keep an eye out!
Could you explain more about this relationship?
It depends on which currency you are talking about. Basically, there is an opposite correlation between the US stock market and the US dollar. When Wall Street rises, the USD usually falls. On the same principle there is a positive correlation between the EUR and Wall Street. However, things are not always like this and correlations tend to vary.