I found out that even if the currency pair is not related to USD, EUR AUD for example, it is still somehow being affected by USD news. My position was suddenly reached stop loss in a few minutes. Why is that?
I found out that even if the currency pair is not related to USD, EUR AUD for example, it is still somehow being affected by USD news. My position was suddenly reached stop loss in a few minutes. Why is that?
Most currencies are ultimately hedged against the reserve currency which is the US dollar.
It is mostly in the form of receivables/debt instruments, such as the treasury bills, notes and long term bonds.
Every commerce related trade in the world is directly or indirectly, technically or fundamentally, linked to the US dollar.
Please study the bond markets, specifically how credit rating of government bond eventually impacts its respective country's national currency.