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eternalfuture · 28-01-2004, 01:09

Daver421,

I usually treat the two separately.

When the prime mover is USD, you can expect EUR and GBP move in the same direction, assuming their cross rate (EUR/GBP) remains stable.

When the prime mover is EUR, especially if EUR strengthens against GBP, signalled by the rise in EUR/GBP, then EUR/USD may rise, while GBP/USD can be either stagnant or falling.

There's only indication that the EUR/GBP influence is at work when the two don't move toward the same direction.

Cheers!

28-01-2004, 01:09	#2 (permalink)
eternalfuture Padawan Join Date: Aug 2003 Posts: 892 Rep Power: 0	GBP and EUR Daver421, I usually treat the two separately. When the prime mover is USD, you can expect EUR and GBP move in the same direction, assuming their cross rate (EUR/GBP) remains stable. When the prime mover is EUR, especially if EUR strengthens against GBP, signalled by the rise in EUR/GBP, then EUR/USD may rise, while GBP/USD can be either stagnant or falling. There's only indication that the EUR/GBP influence is at work when the two don't move toward the same direction. Cheers!