GBP/USD - EUR/USD | Forex Factory

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GBP/USD - EUR/USD

  • #1
  • First Post: Jan 11, 2008 2:15am Jan 11, 2008 2:15am
Friends,
Is there any Deep Correlation between these two pairs.
I see whenever GBP/USD moves up.. EUR/USD moves up too..
And vice-versa.

Advice
  • #2
  • Jan 11, 2008 2:24am Jan 11, 2008 2:24am
Hi there..What do you mean deep? these 2 pairs usually move similiar..but that's when the dollar moving.But sometimes lately..gbp down or up..eur really dont care about it LOL..it becoz eur is more stabil than gbp..yes..many country support eur as their currency compare to gbp as british currency.So when the dollar weakening..this 2 pair is up..but there is a time that gbp weaking to dollar but euro stabil to the dollar or even getting stronger.There is no linear equation between these 2 pair.2 cents

Quoting jacobtrader
Friends,
Is there any Deep Correlation between these two pairs.
I see whenever GBP/USD moves up.. EUR/USD moves up too..
And vice-versa.

Advice
  • #3
  • Jan 11, 2008 2:25am Jan 11, 2008 2:25am
Yes there is.

As you can see, the 2 pairs are related by their reference currency, USD.

When you buy GBPUSD, you're buying gbp and selling usd simultaneously. So like wise, when you buy EURUSD, you are buying USD and selling EUR.

So if you buy GBPUSD or EURUSD, you are essentially betting that USD will fall. If USD falls, both the pairs will be affected.

I hope this helps.
  • #4
  • Last Post: Jan 11, 2008 2:46am Jan 11, 2008 2:46am
Quoting JodyOng
Yes there is.

As you can see, the 2 pairs are related by their reference currency, USD.

When you buy GBPUSD, you're buying gbp and selling usd simultaneously. So like wise, when you buy EURUSD, you are buying USD and selling EUR.

So if you buy GBPUSD or EURUSD, you are essentially betting that USD will fall. If USD falls, both the pairs will be affected.

I hope this helps.
!
Yep! 100% right, Now Eur/Gbp dominate the movement.
Eur strong n Gbp weak, so GU down n EU up!
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