Hi,
I have noticed that the DJI (Dow Jones Industrial Average) has a positive correlation with EURUSD. DJI is traded on American markets (NYSE).
Logically I would assume that if the U.S stock market goes up, the USD should go up also because improving stock markets lead to foreign investments (which require conversion to USD).
So why then does the dollar fall when DJI goes up?
Does it have something to do with hedging by big players?
I have noticed that the DJI (Dow Jones Industrial Average) has a positive correlation with EURUSD. DJI is traded on American markets (NYSE).
Logically I would assume that if the U.S stock market goes up, the USD should go up also because improving stock markets lead to foreign investments (which require conversion to USD).
So why then does the dollar fall when DJI goes up?
Does it have something to do with hedging by big players?