Comments on: Sharp Rise in EUR/USD as Oil Invenotires Drop http://www.earnforex.com/blog/2009/08/sharp-rise-in-eurusd-as-oil-invenotires-drop/ My Forex experience and some Forex related information that might be useful to other traders Sat, 11 Feb 2012 18:14:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Viktor http://www.earnforex.com/blog/2009/08/sharp-rise-in-eurusd-as-oil-invenotires-drop/comment-page-1/#comment-149715 Viktor Wed, 26 Aug 2009 11:18:31 +0000 http://www.earnforex.com/blog/?p=1550#comment-149715 Got it! thanks again for your time and clarifying. Got it! thanks again for your time and clarifying.

]]> By: Andrei http://www.earnforex.com/blog/2009/08/sharp-rise-in-eurusd-as-oil-invenotires-drop/comment-page-1/#comment-149657 Andrei Tue, 25 Aug 2009 20:00:44 +0000 http://www.earnforex.com/blog/?p=1550#comment-149657 It currently works this way: Oil (or demand for oil) usually rises when the global risk-aversion is low. And if the risk-aversion is low, investors and traders buy stocks and everything that is associated with high risk and high yield. Dollar is a "safe haven" currency, which is bought when the risk-aversion is high and sold when it's low. So when the oil goes up it indicates the general mood of the market participants and thus there is no surprise that EUR/USD also rise after that. It currently works this way:

Oil (or demand for oil) usually rises when the global risk-aversion is low. And if the risk-aversion is low, investors and traders buy stocks and everything that is associated with high risk and high yield. Dollar is a “safe haven” currency, which is bought when the risk-aversion is high and sold when it’s low. So when the oil goes up it indicates the general mood of the market participants and thus there is no surprise that EUR/USD also rise after that.

]]> By: Viktor http://www.earnforex.com/blog/2009/08/sharp-rise-in-eurusd-as-oil-invenotires-drop/comment-page-1/#comment-149650 Viktor Tue, 25 Aug 2009 19:10:50 +0000 http://www.earnforex.com/blog/?p=1550#comment-149650 Hi There, i've just ran into ur blog through google where I was looking for EUR/USD vs Crude Oil correlation. I daytrade crude oil and often use Eur/Usd indicator for prediction in price. HOwever, I have noticed that this correlation also often occurs other way round, where Eur/Usd is moved by the price in Oil. As long as it seems to me your are very comfortable in Forex trading I was wondering if you wouldnt mind to explain to me or clarify to me why is that currency sometimes is strongly influenced by move in commodity. In this case it would this Eur/Usd and Crude Oil. I always thought that currency movement is based on central banks decisions or other crucial reports regarding the state of the economy. But I noticed that there was a big move in Eur/Usd based on Crude oil price due to invetories drop. What does have oil inventories to do with state of the DOllar?? Thank you very much in advance for your time and kind response. Hi There,
i’ve just ran into ur blog through google where I was looking for EUR/USD vs Crude Oil correlation. I daytrade crude oil and often use Eur/Usd indicator for prediction in price. HOwever, I have noticed that this correlation also often occurs other way round, where Eur/Usd is moved by the price in Oil. As long as it seems to me your are very comfortable in Forex trading I was wondering if you wouldnt mind to explain to me or clarify to me why is that currency sometimes is strongly influenced by move in commodity. In this case it would this Eur/Usd and Crude Oil. I always thought that currency movement is based on central banks decisions or other crucial reports regarding the state of the economy. But I noticed that there was a big move in Eur/Usd based on Crude oil price due to invetories drop. What does have oil inventories to do with state of the DOllar?? Thank you very much in advance for your time and kind response.

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