Trading the Euro Crosses

[santo504564]

The most popular EUR crosses are EUR/JPY, EUR/GBP, and EUR/CHF.

News that affects the euro or Swiss franc will be felt more in EUR crosses than EUR/USD or USD/CHF.

U.K. news will greatly affect EUR/GBP.

Oddly enough, U.S. news plays a part in the movement of the EUR crosses. U.S. news makes strong moves in GBP/USD and USD/CHF. This not only affects the price of the GBP and CHF against the USD, but it could also affect the GBP and CHF against the EUR.

A big move higher in the USD will tend to see a higher EUR/CHF and EUR/GBP and the same goes for the opposite direction.


Let's say that the US 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 of their CHF).

Conversely, this would also work in the opposite direction if the U.S. showed negative economic data.

[bulastika]

Its good strategy if you are already a veteran investors. The reason I say this is that your getting rich not only with funds but with knowledge if you are already a veteran trader. The reason why I say that you need to be veteran trader so that I can emphasis that you need to have vast knowledge in order to be successful in this strategy.

[tom]

nice strategy and these crosses are really have some great changes in news times so we should trade in their with news .

[omostar]

Oddly enough, U.S. news plays a part in the movement of the EUR crosses. U.S. news makes strong moves in GBP/USD and USD/CHF. This not only affects the price of the GBP and CHF against the USD, but it could also affect the GBP and CHF against the EUR.

A big move higher in the USD will tend to see a higher EUR/CHF and EUR/GBP and the same goes for the opposite direction.


Let's say that the US 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 of their CHF).

Conversely, this would also work in the opposite direction if the U.S. showed negative economic data.

It is very true just like what happened during the Us manufacturing pmi news. The news affected so many EUR crosses( especially, EUR/GPB) and I have been trying to see the correlation between them.

[bulastika]

Crosses does not really make a difference. why? Since we are doing automated trading now a days. its almost impossible to take advantage of this because the movement in here is just too fast. Meaning its simultaneous. If One pair move the other pair move simultaneously. Another thing three meanings three times more funds needed and three more times needed to review each pairs also.