This is the thing that confuses me. Like when you trade on a pair say the USDCAD for example you are only trading on that pair right?
Let's say a market maker comes in and decides to long the USDCAD so they force price to move upwards i notice that USD as bid pairs like say the EURUSD/AUDUSD tend to fall.
Therefore is it safe to say if alot of ppl/big banks etc start to long say the USDCAD the USD rises in strength and indirectly pairs that the USD is behind like EURUSD fall? Because all the retail traders are buying USDCAD and are not trading EURUSD but somehow it falls as the USD gains strength i guess. What is actually happening?
Let's say a market maker comes in and decides to long the USDCAD so they force price to move upwards i notice that USD as bid pairs like say the EURUSD/AUDUSD tend to fall.
Therefore is it safe to say if alot of ppl/big banks etc start to long say the USDCAD the USD rises in strength and indirectly pairs that the USD is behind like EURUSD fall? Because all the retail traders are buying USDCAD and are not trading EURUSD but somehow it falls as the USD gains strength i guess. What is actually happening?