Currency correlations Among currency to currency correlations, EUR, GBP and CHF have the highest positive relationships. This can be explained by the
Currency correlations
Among currency to currency correlations, EUR, GBP and CHF have the highest positive relationships. This can be explained by their geographic proximity within Europe, as well as close trading relationships and tourism.
Commodity correlations
Canadian dollar has the highest correlation with crude oil due to the significant proportion of Canada’s GDP reliant on oil. While historically AUD has a strong relationship with gold, GBP currently has the highest correlation at 0.55.
Stock correlations
While stocks and currencies are not known to move in tandem with each other, Australian dollar has close to a 0.5 correlation with the S&P 500. The currency’s correlation with FXI, Chinese large cap stocks, is even higher given their geographic proximity and AUD’s liquidity compared to CNH.
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