Question: The reason why EUR/USD and Dow Jones index move together?

When the Dow Jones index fall why EUR/USD also fall with the index? Should EUR/USD index goes up as people are selling the US stocks?

Answer:

Good question asked: this is not 100% correct answer as we can't predict the market movement but this is mostly reason why? Because each currency is linked to each country's economic data (US dollar currency = US economic data such as GDP, unemployment and payroll data) Put it simple Marcro-economic.

EUR is raising against US dollar at the moment because Greek has been funded by ECB for 130B to pay their debts. So European indices, Dow and EUR went up. If ECB didn't provide the fund means EUR would drop sharply as well as EU indices.

But the more impotant is Dow Future is indicated for the each morning of trading. Dow is always sensitive to any news around the world. Most of each country traders always stick with Dow as their main mood to trade.