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Old 04-30-2008, 08:02 AM
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Re: Busy Day Tomorrow

Anna-Maria-
Through my course of study I have heard little whispers here and there about how some folks who trade GBP/USD for example are wise to watch GBP/JPY or another GBP currency cross. Andre also made a nice statement about looking at GBP/CHF or another GBP cross to verify if this activity on GBP/USD is a fluke or if the moves are, well in a sense, REAL.

Would you possibly elaborate on the use of watching other currency crosses that a trader may not personally trade that pair, but may be a good insight to see whether the moves are indeed true or a "fit being thrown" by one of the children? I can't imagine anyone actually looking at say GBP/JPY and saying "Alright- GBP/JPY just tanked last night- I'll go short on GBP/USD" but some places I have found on this wonderful WWW have stated that very dangerous stance. How much weight do these crosses carry on the other pairings? Also is it safe to say that one "cross" is the main focus while the other pairings are more fringe crosses (i.e. is say the GBP/USD the big brother and the GBP/JPY or GBP/CHF the little brother and sister to the GBP/USD?)

Thanks!
Aaron

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