superherobyday
Private, 1st Class
- Messages
- 34
Have some questions about the forces behind the charts.
1) Do currencies move alone, as pairs, or both? For instance, does the EURO change in value independently and thereby affect all EUR pairs? Or do the movements in the various EUR pairs change the value of the EURO as a whole? Or both?
2) Similar to question 1. Is the index of a currency essentially just an "indicator" derived from all its pairs? Or can it be considered the 'true' value of a currency, while the pairs all fluctuate?
3) Is the chart of a cross pair (say EUR/JPY) a derivative of the two underlying major pairs (EUR/USD & USD/JPY)? Or is it an actual independent derivative of the two currencies (EUR & JPY)?
Essentially I'm trying to pin down the correlations between currencies, currency pairs, and cross pairs. Any wisdom, or even a point in the direction of knowledge is appreciated.
Cheers
1) Do currencies move alone, as pairs, or both? For instance, does the EURO change in value independently and thereby affect all EUR pairs? Or do the movements in the various EUR pairs change the value of the EURO as a whole? Or both?
2) Similar to question 1. Is the index of a currency essentially just an "indicator" derived from all its pairs? Or can it be considered the 'true' value of a currency, while the pairs all fluctuate?
3) Is the chart of a cross pair (say EUR/JPY) a derivative of the two underlying major pairs (EUR/USD & USD/JPY)? Or is it an actual independent derivative of the two currencies (EUR & JPY)?
Essentially I'm trying to pin down the correlations between currencies, currency pairs, and cross pairs. Any wisdom, or even a point in the direction of knowledge is appreciated.
Cheers