Posts Tagged ‘correlation’


Why Are Bonds and Currencies Correlated?

There exists a strong correlation between bonds and currencies. So, you must pay attention to this correlation. One of the reasons is the interest rates. For example, look at this chart. The purple line is the Australian 1-year government bond yield. The orange line indicates the Australian cash rate. As you can see from the chart, both are closely correlated. When you increase the duration more than a year, then you […]

Why Do Oil Prices Have Such a Big Impact on the Canadian Dollar?

The Canadian dollar is very sensitive to changes in oil prices. As you can see from this example, there exists such a strong correlation between the Crude Oil, and the Canadian dollar. These are the reasons behind such strong correlation. Canada's economy is largely dependent on the oil it produces. Crude petroleum contributes to 14% of Canada's total exports. So, 98% of the quantity that it produces is exported to the US. […]

Oil Price vs Canadian Dollar Graph | The Correlation Between Oil & CAD

In this video, you will learn about the correlation between the Canadian dollar, and the Crude Oil. Canada is a major exporter of Crude Oil. It has increased its capacity in production and is supplying about 6 million barrels per day. It has 173 billion barrels in its oil reserves. However, Canada is not a member of OPEC. About 99% of its exports goes to US. Hence, Canada's economy […]

Forex Trading — Stock Market and Currency Correlations

This video teaches you about how movements in Stock markets can be correlated to some Currency pairs. As you can see in the chart the blue line indicates the AUD/USD pair and the dark brown line is the S&P500 index. As the US Stock market, the S&P 500 line moves higher the AUD/USD pair also tends to move higher and vice versa. The NZD/USD pair is another example. The AUD/USD pair is considered […]

Identify Correlating Pairs and What Does It Mean

How can you identify correlating pairs and what does it mean. What correlation means is when one pair does something the other pair does the same or when one pair goes up the othe pair goes down. Basically they are kind of mirror each other. An example is the Euro and Swiss Franc. Switzerland has lots of business in the Eurozone and if anything bad happens to Europe, then […]

Correlation Basics in the Forex Market — EUR/USD and USD/CHF

Correlation is the concept of understanding of when one pair is going in one direction and other pair going in opposite direction. For example if EUR/USD pair is coming to a major support zone then it means USD/CHF is coming to a major resistance zone. Looking at the EUR/USD chart we can see it had a bounce at 1.3354 which is a major support level and you can see USD/CHF bouncing off […]

Euro Pound Correlation — Question and Tip — 3 Ducks

Captain currency trader in this video answers a few questions with respect to correlated pairs like EUR/JPY, GBP/JPY and the 3 Ducks trading system. He suggests looking at the 4 hour chart. If the current price is above the SMA in the 4 hour chart, you could say that the Euro was stronger than the Pound at the moment. If the current price is below the SMA on the 4 hour chart we could […]