Scribd
Upload
281 views

Correlation Cheat )

The document discusses the correlations between different currency pairs, commodities, and stock market indices. It notes that the US dollar and DXY index are positively correlated with the S&P 500, DAX 30, and Nikkei 225 indexes. When the dollar or DXY rises, it puts upward pressure on those stock markets. Several currency pairs and commodities such as gold, oil, and silver are also discussed in terms of their positive or negative correlations with other assets. Central bank interest rate decisions and Friday market movements are also addressed in terms of their impact on currency retracements on Mondays.

Uploaded by

Sharma comp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
281 views

Correlation Cheat )

The document discusses the correlations between different currency pairs, commodities, and stock market indices. It notes that the US dollar and DXY index are positively correlated with the S&P 500, DAX 30, and Nikkei 225 indexes. When the dollar or DXY rises, it puts upward pressure on those stock markets. Several currency pairs and commodities such as gold, oil, and silver are also discussed in terms of their positive or negative correlations with other assets. Central bank interest rate decisions and Friday market movements are also addressed in terms of their impact on currency retracements on Mondays.

Uploaded by

Sharma comp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

OUR GUIDE TO THE INTER MARKET CORRELATION

BETWEEN FOREX, COMMODITIES AND EQUITIES MARKET:


 
Always  check  Economic  Calendar  Daily    
 
The  (DXY)  is  highly  correlated  to  S&P  500,  DAX  30  NIKKEI  225,  this  usually  means  if  the  US  DOLLAR  
goes  UP,  this  in  turn  puts  UPWARD  pressure  on  the  S&P  500,  DAX  30  NIKKEI  225.    
 
The  USD/CHF  is  the  same  trade  as  EUR/USD  mostly  in  the  opposite  direction    
Essentially  USD/CHF  and  (DXY)  are  the  same  trade  when  (DXY)  RALLIES  the  USD/CHF  RALLIES  
 
There  has  been  a  shift  these  days;  when  AUD/NZD  RALLIES  -­‐  NZD/USD  and  AUD/USD  RALLIES  
 
Ø COMMODITIES  prices  TANK  this  puts  pressure  on  CAD,  AUD  and  NZD  
Ø GOLD  RALLIES  the  EURO,  AUD,  NZD  RALLIES.  Also  when  GOLD  RALLIES  -­‐  DXY,  JPY  and  USD/CHF  
SELLS  
Ø SILVER  RALLIES  -­‐  DXY  SELLS  OFF  
Ø LIGHT  SWEET  CRUDE  OIL  RALLIES  –  GBP  RALLIES  AND  the  EURO,  CHF  DXY  and  USD/CAD  all  SELL  
OFF  
Ø GBP/USD  RALLIES  the  RBOB  &  Light  Sweet  OIL  RALLIES.  GBP  IS  DRIVEN  BY  OIL    
Ø FTSE  100  RALLIES  GBP/USD  SELLS    
Ø EQUITIES  RALLIES  USD/JPY  RALLIES    
Ø DAX  30  RALLIES  GBP/USD  SELLS  
Ø DAX30  &  CAC40  SELLS  pushes  USD/CHF  DOWN  and  EUR/USD  RALLIES  
Ø NIKKEI  225  RALLIES  USD/JPY  RALLIES.  This  includes  all  currency  pairs  with  JPY  it  is  
Imperative  to  watch  the  NIKKEI  225  correlation  very  closely    
Ø EUR/AUD  RALLIES  AUD/USD  SELLS  
Ø EUR/USD  RALLIES  -­‐  DAX30  SELLS  
Ø EUR/USD  RALLIES  -­‐  USD/CAD  SELLS  and  usually  the  AUD/USD  RALLIES  and  NZD/USD  SELLS    
OFF  
 
FOREX    REMINDER:  
 
When  the  RBA  (or  any  country)  cuts  their  interest  rates  normally  what  happens  E.G  AUD  (or  that  counties  
currency)  RALLIES  Also  should  the  dollar,  (either  US  or  AUD)  Gold,  or  Silver  rallies  on  Friday  what  usually  
happens  there  is  a  90%  chance  of  a  retracement  on  the  following  Monday  

You might also like