The top Forex Market correlations

16 мар.

1-Gold (XAU/USD) and AUD/USD: Gold prices often exhibit a positive correlation with the Australian dollar (AUD/USD). Australia is a major producer of gold, and the Australian dollar is sensitive to changes in gold prices. When gold prices rise, AUD/USD tends to appreciate, and when gold prices fall, AUD/USD tends to weaken.

2-Gold (XAU/USD) and USD Index (DXY): Gold prices tend to have a negative correlation with the US Dollar Index (DXY). When the DXY strengthens, gold prices often weaken, and when the DXY weakens, gold prices tend to strengthen. This inverse relationship is because gold is priced in US dollars, and a stronger dollar makes gold more expensive for holders of other currencies.

3-S&P 500 Index and USD/JPY: The USD/JPY currency pair often exhibits a positive correlation with the S&P 500 Index. When the S&P 500 Index rises, USD/JPY tends to appreciate, and when the index falls, USD/JPY tends to weaken. This correlation is because both assets are seen as risk-on indicators, meaning they tend to move in the same direction in response to changes in market sentiment.

4-Crude Oil (WTI) and CAD/JPY: Crude oil prices, particularly West Texas Intermediate (WTI) crude, often have a positive correlation with the Canadian dollar/Japanese yen (CAD/JPY) currency pair. Canada is a major exporter of oil, and the Canadian dollar is sensitive to changes in oil prices. When oil prices rise, CAD/JPY tends to appreciate, and when oil prices fall, CAD/JPY tends to weaken.