Masters of the Trading Universe!!
As you all know the EURUSD and the GBPUSD, are heavily positively correlated, thus they move in sync. For example today both the GBPUSD and the EURUSD moved up. But which currencey pair leads the way?
Is the the EURUSD the dominate pair as it has the highest liquidity, or is cable leading the way? Or is it a mixture of both, depending for example of on the market news.
I am personally more engaged into the EURUSD, thus my bias. However as said before the EURUSD has the greater daily volume, thus it should theoretically lead the way most times, when they are correlated. Furthermore, I have a longterm technical strategy which works very well on the EURUSD, but not on the GBPUSD, however if I trade the GBPUSD based on the EURUSD signals, I get good results, not as good as trading the EURUSD directly, but there still tradeable. Could this relationship explain that the GBPUSD lags the EURUSD (not always, but most of the time)?
Looking forward to hear your thoughts, as it really interest's me!
Best regards
Paul
As you all know the EURUSD and the GBPUSD, are heavily positively correlated, thus they move in sync. For example today both the GBPUSD and the EURUSD moved up. But which currencey pair leads the way?
Is the the EURUSD the dominate pair as it has the highest liquidity, or is cable leading the way? Or is it a mixture of both, depending for example of on the market news.
I am personally more engaged into the EURUSD, thus my bias. However as said before the EURUSD has the greater daily volume, thus it should theoretically lead the way most times, when they are correlated. Furthermore, I have a longterm technical strategy which works very well on the EURUSD, but not on the GBPUSD, however if I trade the GBPUSD based on the EURUSD signals, I get good results, not as good as trading the EURUSD directly, but there still tradeable. Could this relationship explain that the GBPUSD lags the EURUSD (not always, but most of the time)?
Looking forward to hear your thoughts, as it really interest's me!
Best regards
Paul