Currency Correlation (10 July 2021)
(1) This week, there are many pairings with strong correlation.
Strong Positive Correlations: (GBP/USD, EUR/USD), (GBP/JPY, EUR/JPY), (EUR/USD, EUR/JPY), (GBP/USD, AUD/USD), (EUR/USD, AUD/USD), (EUR/JPY, AUD/USD), (GBP/USD, NZD/USD), (EUR/USD, NZD/USD), (AUD/USD, NZD/USD).
Strong Negative Correlation: (GBP/USD, USD/CAD), (GBP/JPY, USD/CAD), (EUR/USD, USD/CAD), (EUR/JPY, USD/CAD), (AUD/USD, USD/CAD), (NZD/USD, USD/CAD).
Be cautious when trading the currency pairs within each pairing concurrently as the magnitude of their movement tends to be similar, thus increasing the risk undertaken when they are moving against you.
(2) The are no weakly correlated pairings this week.
Trading currency pairs that are weakly correlated concurrently has a lower level of risk since the tendency of those currency pairs moving in tandem is low.
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