EUR/USD follows US stock market

Discussion in 'Forex Trading' started by Sorin, Feb 12, 2008.

  1. Sorin

    Sorin

    Explain me please, why does cross EUR/USD just repeat all moves of stock US indexes? If Dow goes up then EURO becomes stronger.
     
  2. My view is that now most stock "growth" is merely inflation due to ridiculous rate cuts, etc....so when the stock market goes up, the USD value goes down...

    So if you're trading the Euro against the US Dollar, when the Dollar goes down, the Euro goes up.
     
  3. Sorin

    Sorin

    However yen movement looks logically - yen drops when US stockmarket is rising.
     
  4. correct. due to intense carry trade.
     
  5. jsmooth

    jsmooth

    YEN: tons of stops are layered above that 108 handle....we may be off to the races to 110 if we can break that
     
  6. USD/JPY follows the stock market due to carry trade, as some have ponted out.

    EUR/USD actually follows oil prices to some extent. Compare charts and judge by yourself.
     
  7. -Pull up a quote for U/J
    -Trade U/J from looking at the ES 1m or 5m chart

    I use Lag RSI and slope direction to filter out the noise and it works like magic.

    Free $$$$
     
  8. Sorin

    Sorin

    Thanks for explanations.