What is the relationship between the stock market and the currency market? There has been growing correlation between the equity markets and the currency markets. However, it is difficult to figure out what leads the other. Sometimes a movement in the equities triggers a move in the currency market. At other times, it is the other way around, movement in the currency market triggers follow up action in the equity markets.
There are two different ways to trade equities with the currencies. You can trade the correlation between the currencies and equities with fundamentals or technicals. It depends on the situation. Now, it you trade currencies, you must have been following what is happening to the EURO. Watch this EURO Video by Adam Hewison, President of INO.com and Co-creator MarketClub that shows how EURO is going to play out in the future with its effect on the Europe and and the US Equity Market.
This is what Adam Hewison has to say; “It’s the biggest market in the world and is traded 24 hours a day,6 days a week, and therefore one that is impossible to ignore. I’m speaking, of course, about the forex market. The question is, is this the tail that’s wagging the dog? Meaning, is the forex market, mainly the euro, dictating the trend in American and European equity markets.
The answer is yes, for the moment it is. Now, if you’re not familiar with the forex markets and the euro, you should look at the ETF FXE, the spot euro, and also the euro futures market at the Chicago Mercantile Exchange (CME), as they are all tradable. In today’s short video we show you exactly how we think this currency will play out in the future. As always, our videos are free to watch and there is no need for registration. Please comment on your thoughts on this market.”