Where’s the USD going to go if EUR crosses take off higher?
The EUR looks very bid on the crosses but what I haven’t quite figured out is whether pairs like EUR/GBP will benefit most from a higher EUR/USD or a lower GBP/USD? Or will be be the classic ‘scissors’ cross move with one going up and the other going down? I’m certainly not discounting the latter, as that’s what normally happens when we see big moves in the cross pairs.
If EUR/GBP reaches .9000 again in coming months, will it be a) EUR/USD mid-range at 1.3000 and cable much lower at 1.45? b) Cable mid-range at 1.60 and EUR/USD much higher at 1.45? or c) EUR/USD at upper end of range near 1.38 and cable at lower end of range near 1.53?
As for EUR/CHF, if it reaches 1.30 again will it be a) EUR/USD at 1.30 and USD/CHF at 1.00? b) EUR/USD 1.45 and USD/CHF at .90 or c) EUR/USD 1.38 and USD/CHF .94?
I believe the EUR crosses will rise towards the said levels but I’m really not sure how they will get there.