Good stuff. I appreciate your thoughts and insight, Sean. Thank you.

I kinda figured the arbitrage would be almost instantaneously in todays day and age. Not much we can do to profit on that minute of a timeframe, but I am thinking for longer term trades….for example, the Daily or 4H charts…to always look at other correlated pairs for clues to a particular pair’s directional movement….because what we’re seeing on a pair chart is not only the influence of that pair’s supply and demand, but also the supply and demand of other pairs’ on that pair…..like how you do when you look at other correlated pairs.

So for EUR/CHF, it’s moving maybe only a little bit on EUR/CHF-specific chart technicals, orders being processed, fundamentals, etc…..but mostly perhaps from the disparity of EUR/USD and USD/CHF…and the algos and computers moving EUR/CHF to bring it in line with how the other two pairs are moving and the disparity between them..

Here’s a couple questions I had on orders in the interbank market and how they affect other pairs. I’d really appreciate any info. you’d care to share on this.

Let’s say a large player sends thru a very large EUR/JPY order. Since EUR/JPY is made up of EUR/USD and USD/JPY…a large EJ order would have to also move up these other two pairs….it’s just of matter of how much on each. So if, for example, the large order moves EJ 30 pips from 130.00 to 130.30, EUR/USD * USD/JPY must move and multiply up to 130.30. My question is this: what or who is making these two pairs move to catch up to the EJ order? Algos? Arbitrage players/programs?

And also, as far as how much each of the two pairs move, for instance, maybe UJ moves up more than EU this time….but the next time EU might move up more than UJ……..is it all based on what available liquidity there is in each pair? For instance, if EU has fewer offers in its way than UJ, it will move up further than UJ?

Since in FX all pairs are related in some way, I’m just wondering how it is all brought together mechanically on the orders going thru and affecting all the other pairs. Maybe it would help in contemplating certain pairs for potential trades. I know you like to look at other pairs and how they might affect others, that is how I got to thinking of my questions above.

Thanks for any enlightenment you can share on this.