Trading the Euro Crosses (Part 2)
Let’s say that the U.S. shows
positive economic data causing the USD to rise. This means that GBP/USD would
fall, driving the price of the GBP down. At the same time USD/CHF would rise,
also driving the price of the CHF down.
The drop in GBP price would then
cause EUR/GBP to rise (since traders are selling off their GBP).
The drop in CHF price would also
cause EUR/CHF to rise (since traders are selling off their CHF).
Conversely, this would also work in
the opposite direction if the U.S. showed negative economic data.
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