I'm still learning a lot when it comes to trading, and studying a lot on relationships between certain commodities and the USD. I'm sure I am missing something or just clearly do not understand this aspect of the forex market specifically pertaining to EURUSD, but I always assumed that an interest hike strengthened the dollar, and no hike made it weaker. Yesterday in Yellen's dovish comments relating to upcoming FOMC the EURUSD went up along with certain commodities, but I would of felt EURUSD would go down sice a dovish comment on Fed hikes would support a weaker dollar vs a stronger dollar were they to raise interest rates. Maybe I'm completely misinterpreting the meaning of EURUSD. Isn't the Eur/ USD showing the price of the dollar in comparison to the European dollar value? As stated I'm a noob in this arena and currently just trying to learn certain aspects. Any feedback greatly appreciated.
EURUSD going up means dollar weaker, EUR stronger, which is exactly what you'd expect on the back of dovish commentary by Yellen. EURUSD denotes how many dollars one Euro can buy.
Ahhhhh ok thank you very much. I had it backwards thinking that was how much the dollar was worth compared to the Euro. Appreciate the help.