Imagine horses running for a race.
Horses are named EUR, CHF, USD, GBD, etc...
For 10mn,
EUR runs twice faster than CHF (=EUR/CHF goes up),
USD runs twice slower than GBD but faster than CAD,
USD runs as fast as CHF, etc...
etc...
etc...
Could'nt we calculate a horse ranking : the very best horse is AUD, the second is JPY, etc...
From that fact, could'nt we guess that the first horse will be better than the last one and so, buy the pair [first/last].
What do you think of that?
Horses are named EUR, CHF, USD, GBD, etc...
For 10mn,
EUR runs twice faster than CHF (=EUR/CHF goes up),
USD runs twice slower than GBD but faster than CAD,
USD runs as fast as CHF, etc...
etc...
etc...
Could'nt we calculate a horse ranking : the very best horse is AUD, the second is JPY, etc...
From that fact, could'nt we guess that the first horse will be better than the last one and so, buy the pair [first/last].
What do you think of that?