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The following table includes the correlation between gold and the most popular currency pairs over various timeframes. A value close to +1 indicates a strong positive relationship between gold and the pair, while a value close to -1 indicates a strong negative relationship. Colored values indicate week-to-week changes of over 30%.

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Gold

USD/CAD

AUD/USD

NZD/USD

EUR/USD

GBP/USD

USD/JPY

USD/CHF

3 Day 15 Min

0.57

-0.57

-0.65

-0.64

-0.66

0.48

0.55

1 Week 60 Min

0.25

-0.40

0.17

-0.11

-0.46

-0.08

0.16

2 Week 60 Min

-0.03

0.37

0.05

0.16

0.13

-0.13

0.27

1 Month Daily

0.43

0.24

0.77

0.53

0.52

-0.60

-0.76

Weekly Commentary: Despite a week filled with major event risk stemming from Greece, short-term correlations between major currency pairs with the US dollar weakened. Although correlations rose in favor of the US dollar as investors sought haven, liquidity drove dollar buying in lieu of gold. Although longer-term correlations are still relatively high for the New Zealand dollar and the Swiss Franc, the magnitude of change due to Greek fears may serve as an indicator of asset movements if Greek developments continue to shock markets.

Gold-Forex_Correlations_06172011_body_Picture_1.png, Gold - FOREX Correlations: Short Term Correlations Drop as Investors Seek Dollar's LiquidityGold-Forex_Correlations_06172011_body_Picture_2.png, Gold - FOREX Correlations: Short Term Correlations Drop as Investors Seek Dollar's Liquidity

Please note: Chart uses franc rate as CHFUSD to show direct correlation with gold.

Gold-Forex_Correlations_06172011_body_Picture_3.png, Gold - FOREX Correlations: Short Term Correlations Drop as Investors Seek Dollar's LiquidityGold-Forex_Correlations_06172011_body_Picture_4.png, Gold - FOREX Correlations: Short Term Correlations Drop as Investors Seek Dollar's Liquidity

Written by David Liu, DailyFX Research