san diego
Experience: Intermediate
Platform: FXCM MarketScope, NT, Interactive brokers, AMP
Broker: FXCM, Interactive Brokers
Trading: FOREX, IWM, SPY, XLE, NQ
Posts: 228 since Apr 2010
Thanks Given: 72
Thanks Received: 145
|
This could have something to do with arbitrage?? The EUR/USD, EUR/JPY, and USD/JPY all spiked down on the opening at 15:00 6/28/2015
Arbitrage means the following must give the same yen:
Case 1: Start with a dollar -> Buy Euros -> take the Euro to buy Japanese Yen using pairs EUR/USD, EUR/JPY
Case 2: Start with a dollar -> Buy yen using pair USD/JPY
So, In case 1, my dollar is worth less because EUR/USD went down, and the euros also yielded less yen because the EUR/JPY went down. Therefore USD/JPY must go down to make them equal.
|