DislikedThere is no perfect correlation since sometimes other factors are at play.
However in general when the Dow is going down or SP500 more or less the same thing. The ratio there is about 7 to 1 and again this is general.
When money leaves the Dow it means thar risk is off and the money flows into US Bonds to be parked.
The Euro is sold and American Dollars are bought and then the US Bonds are bought. I follow the Yield on the 2 Year US Bonds and the 10 Year US Bonds.
The movement between asset classes moves the charts as prices change.
If...Ignored
In simple words, a rate cut is bearish for the euro but the rally in stocks if it is follow in the US can trigger weaker dollar too on risk. The outcome will depend in the offset of the 2 variables (is a complex FA case today, not easy for new traders exploring FA). Obviously, a euro rate cut will be very bearish for the pair and inversely proportional to stocks if you didn't have risk off environment with debt issues and tomorrow summit.
sisse
Pending conversations? PM for a chat...I am mainly in OTM now