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Chapter 22, Part III. Crosses – Continuation of Continuation... and Finish.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jan 7, 2012.

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  1. Administrator

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    Part III. Crosses – Continuation of Continuation... and Finish. [​IMG]

    Most tradeable crosses

    Commander in Pips: Today we will start the conversation about the most popular crosses that are based on the JPY and EUR. These currencies stand next after USD in a row of greatest trading volumes. Besides, as we’ve said in the statistical part. the EUR is the second reserve currency and the Yen is the third one. So, liquidity is rather solid with these currencies also.

    The most popular EUR pairs are EUR/JPY, EUR/GBP and EUR/CHF. News releases or macro data from Switzerland or the EU – in other worlds, those, that could influence on EUR and CHF will be more sensitive to EUR crosses rather than on EUR/USD and USD/CHF pairs. UK news or macro data, in turn, could be solidly impact on the EUR/GBP pair.

    [​IMG]
    Commander in Pips: Since the US economy is the largest in the world, any news and macro data from there will definitely make an impact on GBP/USD and USD/CHF pairs – they will touch EUR crosses as well, but maybe not as hard as USD pairs.


    Still there is such opinion on the market that if, for example, US data releases quite positive, this leads EUR/GBP and EUR/CHF turn up. EUR/GBP turns down since GBP/USD turns down, hence in EUR/GBP pound becomes weaker and EUR/GBP starts to rise. The same is with EUR/CHF – USD/CHF goes higher, so investors start to sell francs and that leads EUR/CHF to increase. But I do not quite agree with that.

    Pipruit: Why not?​
     
    #1 Administrator, Jan 7, 2012
    Lasted edited by : Sep 30, 2016
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