Futures Forex relationship

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jeffkerwin
92
jeffkerwin  

Hi all,

I was wondering does the Futures and Forex have some sort of relationship that could help with forex trading??

I am a little new to forex, but I use this example to clarify what I mean:

In the futures, if the USD goes up in value, is there a similar movement in the forex market with USD based pairs. e.g. USD goes up in value in the futures, and that causes the EUR/USD to go up also.

Does anyone know if this is the case??

Thanks

Jeff

Mazoem
75
Mazoem  
jeffkerwin:
Hi all,

I was wondering does the Futures and Forex have some sort of relationship that could help with forex trading??

I am a little new to forex, but I use this example to clarify what I mean:

In the futures, if the USD goes up in value, is there a similar movement in the forex market with USD based pairs. e.g. USD goes up in value in the futures, and that causes the EUR/USD to go up also.

Does anyone know if this is the case??

Thanks

Jeff

You can learn the difference here:

https://en.wikipedia.org/wiki/Foreign_exchange_market

Forex and futures charts are highly correlated. That is why I use COT data so much. Do a search for "Commitment of Traders" reports. They are weekly reports from the CFTC that show net positions of commercial and non-commercial traders.

Check out www.shatterfield.com to learn more about COT.

(I am not affiliated with them... just a satisified subscriber)

Hope that helps,

Jon

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