News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/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
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • Global stock markets may see turbulent volatility if darkening clouds over Washington’s relations with Beijing turn into a geopolitical storm. Which assets will be the lifeboat? Find out here:https://t.co/RkFI6qAyik https://t.co/9Ppa4d48Ql
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/e0liqVDzw6
  • The Japanese Yen may fall against its major peers, but there is room for a near-term climb that wouldn’t necessarily overturn a bearish technical bias. USD/JPY is eyeing support. Get your market update from @ddubrovskyFX here:https://t.co/AEnQCXnwAL https://t.co/tuq7DDF3jE
  • Protests in Colombia may continue to pressure the Peso, but surging commodity prices and a weaker Greenback could curb USD/COP gains. Get your market update here:https://t.co/vcVH75xuKI https://t.co/kEvbsagB4a
  • Money never sleeps.... https://t.co/mAkpWd2M3O
  • The US exchanges are closed and now we have to turn over to the cryptocurrency charts to monitor developments in risk trends over the weekend. Unfortunately, it can be difficult to separate systemic sentiment influences vs isolated issues (like a celebrity's tweet about a coin)
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.93% 🇦🇺AUD: 0.72% 🇪🇺EUR: 0.55% 🇨🇦CAD: 0.50% 🇬🇧GBP: 0.32% 🇯🇵JPY: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rzD7Gp4VIC
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 1.17% Gold: 0.92% Oil - US Crude: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/TU8HEn8Gbk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.44%, while traders in France 40 are at opposite extremes with 73.01%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/M5ItmLXuiw
  • The Australian Dollar plummeted more than 1.4% against the US Dollar since the start of the week with AUD/USD reversing off technical resistance at the yearly high-close. Get your $AUD market update from @MBForex here:https://t.co/72ORZ3wZwx https://t.co/zG3UzI6bRc
Gold-Forex Correlations: European Markets Expected to Drive Gold

Gold-Forex Correlations: European Markets Expected to Drive Gold

David Liu, Technical Strategist

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