This isn't as simple a matter as it initially seems. I am struggling to understand currencies behave almost identically on their pair crosses at exactly the same time.
By way of instance, when the EUR is weakening, it is going to fall simultaneously against the USD, CHF, JPY, GBP etc.. On the face of it this seems clear, but I can not know why or the mechanics.
As we all know, the sale of one currency is just done from the buying of another. It is a true market of one and trading currencies electronically is not any different to doing it physically at the regional bank or Bureau de change. If I determine the EUR is becoming less valuable, I'd like to sell it and swap it for something of greater worth (preferably of the greatest value). If I had been to do this in my regional bank, I wouldn't walk in with my Euro's and ask to swap for GBP, also USD, and CHF, and JPY etc, not least because any one of those other currencies might be of even less worth than my Euro's.
So does the EUR strengthen or weaken simultaneously against all of the other currencies? This is very evident when watching term time frames. When there's a sudden 20-30 pip move involving the EUR over a two minute period, the move is going to show up on each pair which includes the EUR. Why? How can that happen?
Is somebody actually buying or selling the exact same currency in exchange for every other currency they can get their hands on? If so what would be the logic for this activity? Or is it a case of the main liquidity providers concurrently removing their BID's or even OFFER's in the market for some reason? (contrary to popular belief, prices can move on your chart with no buying or selling taking place).
I will understand the significance over the long run as governed by economic sentiment, but I can not know it in the supposed noise at the shorter term. Spikes and the fluctuations will happen almost identically on every single pair involving the currency, and I cant figure out why this would happen. Why would sound happen at precisely the exact same time on each pair? That 10 spike upward and then immediately back down again happens on each EUR pair - which isn't random; it has to be coordinated in some shape or another.
Any help from somebody with more in-depth market knowledge than me would be greatly valued.