InterMarket Relationships

Discussion in 'Forex' started by KiasuTrader, Apr 6, 2004.

  1. Can anyone tell me what market or markets have an affect on the Eur/USD? For example I trade the S&P futures and use the Dow and Nasdaq in helping to determine the direction of the S&Ps. Can you do this with the Euro?

    I've heard that Crude Oil and the Swiss frank can affect it. Can anyone tell me more please?


  2. Saham


    Kiasu: It would be nice to think you could use one market to judge or monitor the upcoming direction of another.

    I don't think you can.

    When I trade I will typically note the time of a major news announcement, sometimes I will even try to determine how the news will effect direction.

    But in forex there are other trade dynamics that can have more impact on a trade.

    Besides, pretty much all factors have already been priced in a (currency) pair by the time you open your trade.

    It is what happens AFTER you open your trade that can matter more regarding your success/failure.

    It may be a good idea to monitor the news while you have open positions.

    I have been able to take advantage of massive moves WAY before (10 to 30 seconds) the market picked up on something due to just paying attention.

    However, I've been wrong usually in excess of 85% regarding the direction of my trades that I open.


  3. Eur/GBP is also a good indicator. It usually has a positive correlation to Eur/USD. Gold also can be a good indicator.