Thread: Giving the long dollar trade another try
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Old 11-09-2007, 01:34 PM
tippy tippy is offline
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Join Date: Jun 2005
Posts: 272
Default Re: Giving the long dollar trade another try
The correlation between the EUR/USD and GBP/USD pairs is very high, so you get about the same size moves overall. The spread for the EUR/USD averages about 2.5 pips while the GBP/USD averages about 4.5. That is main reason I never trade the pound. It adds up on a daytrading basis.

Never liked the Yen. Unwinding of the carry trade seems to always screw my trades. The correlation with US equities is always pretty dependable though. Seems like the yen has the capacity to move for non-fundamental reasons when I least expect it(or maybe I just don't have a good grasp of its underlying fundamentals).
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