Euro Trade Strategy
German bund yields follow the DAX in up markets and down in falling markets while the bund price moves in opposite directions. To trade the euro/U.S. dollar, follow German bund yields.
As the DAX is up along with bund yields, the euro/U.S. dollar will go up, a buy the euro/U.S. dollar. Sell the euro/U.S. dollar when the DAX is down along with bund yields. The U.S. dollar side follows the German bund price up and down.
While this statement may be correct and can be employed as an evaluative tool, the S&P 500 is the better measure because it can determine overall DAX and U.S. dollar movements until the New York Stock Exchange opens. The euro will always outpace the U.S. dollar side due to buying and selling of the euro either ...
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