Hey guys,
I can understand why there would be a correlation between say Oil and USD/CAD or Gold and AUD/USD, but how would one go about explaining correlations between pairs such as GBP/USD and EUR/USD, from an order flow perspective? Is it simply the USD backbone? Is there exploitable potential in correlations? Perhaps identifying situations of divergence?
Just thinking aloud,
xXTrizzleXx
I can understand why there would be a correlation between say Oil and USD/CAD or Gold and AUD/USD, but how would one go about explaining correlations between pairs such as GBP/USD and EUR/USD, from an order flow perspective? Is it simply the USD backbone? Is there exploitable potential in correlations? Perhaps identifying situations of divergence?
Just thinking aloud,
xXTrizzleXx