CURRENCY PAIRS THAT MOVE TOGETHER

Currency pairs that move together, known as correlated pairs, are a vital concept in forex trading.

Understanding the relationships between these pairs can provide traders with valuable insights into market dynamics.

This introduction delves into the world of correlated currency pairs, exploring how certain combinations tend to exhibit synchronized price movements due to underlying economic factors or geopolitical influences.

By comprehending these connections, traders can enhance risk management, diversify portfolios, and make more informed trading decisions.

Whether you’re a novice or an experienced trader, delving into the intricacies of currency pairs that move together can significantly bolster your trading strategies.

CURRENCY PAIRS CORRELATION TABLE

The currency pairs correlation table is a list of currencies and how they are related in terms of their strength, weakness, similarities, and differences.

The relationship between these currencies is important as what happens in one currency pair can affect the other in the opposite or the same direction.

CURRENCY PAIRS THAT MOVE TOGETHER

These are the currency pairs that move together;

USDCHF/USDJPY

EURUSD/NZDUSD

AUDUSD/NZDUSD

EURUSD/GPBUSD

EURUSD/AUDUSD

CORRELATION COEFFICIENT FORMULAE

Below is the Correlation Coefficient Formulae;

CURRENCY CORRELATION STRATEGY

The currency correlation strategy is going bull or short on a currency pair based on the market direction of another currency pair.

For example below is an image showing side by side currency correlation of AUD/JPY and EUR/JPY. This strategy can only be applied to currency pairs that move in the same direction.

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CURRENCY PAIRS THAT MOVE IN OPPOSITE DIRECTION

There are currency pairs that move in opposite directions, this means that when one pair is bullish the other is bearish.

Below is a list of currency pairs that move in the opposite direction.

USD/JPY—–AUD/USD

USD/CAD—–AUD/USD

GPB/USD——USD/CHF

EUR/USD——USD/CHF

GBP/USD——USD/JPY

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MOST VOLATILE EXOTIC CURRENCY PAIR

One thing an exotic currency pair brings to mind is volatility. Exotic currency pairs are volatile because countries that are paired together have a much stronger economic strength when compared; that is the weaker country has a less diversified economy than the much more stable ones.

For example USD/ZAR and USD/MXN.

Here are lists of the most volatile currency pairs.

USD/ZAR

USD/MXN

USD/TRY

USD/BRL

USD/KRW

GPB/AUD

GBP/NZD

PAIRS LIKE GBPJPY

GBPJPY is a volatile pair and usually comes with a high spread; other forex cross pairs share its volatility similarities.  These pairs are

USD/JPY

EUR/JPY

EUR/CAD 

WHICH CURRENCY PAIRS MOVE THE MOST?

The currency pairs that move the most can be subject to change based on their demand and supply at the time.

However, all the currency pairs that move the most are the exotic pairs which are

USD/ILS

USD/INR

USD/SEK

USD/SGD

USD/TRY

USB/BRL

USD/DKK

USD/HKD

USD/MXN

USD/ZAR

Below are comparative images showing all major pairs, cross pairs, and exotic pairs and their volatility rate.