We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • RT @onlyyoontv: Chinese experts who follow #trade talks tell me 1) #China side would want Dec 15 tariffs canceled as minimum pre-condition…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in US 500 are at opposite extremes with 75.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UCu5dfPDHl
  • Heads Up:🇺🇸 USD MBA Mortgage Applications (DEC 6) due at 12:00 GMT (15min), Actual: N/A Expected: N/A Previous: -9.2% https://www.dailyfx.com/economic-calendar#2019-12-11
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Gold: 0.19% Silver: 0.02% Oil - US Crude: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UCIceROqmN
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.44% 🇳🇿NZD: 0.07% 🇯🇵JPY: 0.05% 🇨🇦CAD: -0.03% 🇨🇭CHF: -0.07% 🇪🇺EUR: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XqqrrlWAgH
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.20% US 500: 0.05% Wall Street: -0.00% France 40: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/32XnoceiRU
  • GBP/USD Faces a Risk of Reversal -British Pound to USD Price Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2019/12/11/GBPUSD-Faces-a-Risk-of-Reversal-British-Pound-to-USD-Price-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/LsgLV9vBZ1
  • Final YouGov MRP Poll update $GBP https://t.co/vf9SsVARYo
  • LIVE IN 30 MIN: Join Currency Strategist @PaulRobinsonFX as he discusses important technical developments relevant to short to intermediate-term commodity and equity index traders. Register here: https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720
  • USD/JPY Outlook Hints at Drop, Nikkei 225 May Join It - https://www.dailyfx.com/forex/technical/article/special_report/2019/12/11/USDJPY-Outlook-Hints-at-Drop-Nikkei-225-May-Join-It.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #USDJPY #technicalanalysis https://t.co/nFYCnCoIeX
Gold-Forex Correlations: European Markets Expected to Drive Gold

Gold-Forex Correlations: European Markets Expected to Drive Gold

2012-11-03 02:36:00
David Liu, Technical Strategist
Share:

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. A colored value indicates change of 25% or greater.

---------------------------------------------------------------------------------------------------------------------------------

Gold

USD/CAD

AUD/USD

NZD/USD

EUR/USD

GBP/USD

USD/JPY

USD/CHF

3 Day 15 Min

0.72

0.35

-0.38

0.86

0.91

-0.59

-0.88

1 Week 60 Min

0.52

0.30

-0.20

0.80

0.70

-0.41

-0.77

2 Week 60 Min

-0.04

0.09

0.13

0.50

-0.10

0.42

-0.28

1 Month Daily

-0.84

-0.74

-0.25

0.22

0.27

-0.90

-0.09

Last week’s article can be found here:

The Takeaway: Gold’s short term correlations have become extremely strong with the Euro and British Pound, suggesting that European events will have increased influence over prices. Even though the US presidential election on Tuesday evening and University of Michigan Consumer Confidence report on Friday, traders must be aware of a Greek parliamentary vote during the middle of the week and continued developments in the Spanish debt saga.

.

Weekly Commentary: Gold’s anti-dollar correlation continues to hold into the election season and after the recent slew of better economic data coming from the United States, cutting back expectations for additional stimulus. More interestingly, the yellow metal has ratcheted extremely close short term correlations with European currencies, namely the Euro and the Pound. The strong correlations could mean that over the next weeks, both US data and European developments could have equal share in influencing gold markets.

The first two days of trading this week were relatively quiet due to the closure of New York markets after Hurricane Sandy. Gold and other commodities were heavily pressured lower on Friday after a better than expected NFP report cut expectations for prolonged stimulus from the Central Bank, driving up the US dollar against all major counterparts. The dollar was boosted again in the middle of the day as the lack of stimulus expectations led to a broad sell-off starting in the equities market, despite the better labor data.

While the coming risk events are unpredictable, the sharp fall of the yellow metal this Friday has resulted in it hitting a intermediate resistance. With the lack of major economic data for the first part of the week, bargain hunters may return, encouraged by recent talks by Fed Presidents Lacker and Williams, who both support further easing. Boston Federal Reserve President Eric Rosengren was also quoted earlier this week as supporting asset purchases until unemployment falls to 7.25%, and a no interest rate policy until unemployment falls to 6.5%.

Gold-Forex_Correlations_11022012_European_Markets_Expected_to_Drive_Gold_body_Picture_3.png, Gold-Forex Correlations: European Markets Expected to Drive GoldGold-Forex_Correlations_11022012_European_Markets_Expected_to_Drive_Gold_body_Picture_2.png, Gold-Forex Correlations: European Markets Expected to Drive GoldGold-Forex_Correlations_11022012_European_Markets_Expected_to_Drive_Gold_body_Picture_1.png, Gold-Forex Correlations: European Markets Expected to Drive Gold

-- Written by David Liu, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.