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Understanding Currency Correlations

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100% found this document useful (1 vote)
248 views6 pages

Understanding Currency Correlations

Uploaded by

crmisfun
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MENTOR

KORORFX
FUNDAMENTAL CONTENTS
Abdiwahab H. Abdalle

CORRELATIONS:
Monitor the DOLLAR INDEX (DXY) as it has an
inverse correlations with XAUUSD.

A stronger DXY typically indicates a Bearish


Sentiment for Gold.

Additionally, Monitor XAGUSD (Silver) prices, as


Gold and Silver trend to follow Similar Trends
with silver often leading movements in Gold.
[Link]

DXY GOLD
KororFX KororFX KororFX +252 615 47 01 22
FUNDAMENTAL CONTENTS
NEWS CORRELATIONS
MENTOR

Abdiwahab H. Abdalle

CPI - Inflation
if inflation Data is Greater than Forecast, DXY Will go up and Gold
Will go Down

DXY GOLD

FOMC - Interest Rate Data


if interest rate data is increasing , DXY Will go up and Gold will Sell

DXY GOLD

KororFX KororFX KororFX +252 615 47 01 22


FUNDAMENTAL CONTENTS
NEWS CORRELATIONS
MENTOR

Abdiwahab H. Abdalle

Unemployment Claims - Unemployment


if Unemployment Data is greater than forecast, DXY Will go down
and Gold will Go up.

GOLD
DXY

Five Major US Indicators

GDP - Gross Domestic Products


NFP - Non-farm Payroll
Balance of Trade
Treasury Intel Capital Survey (TICS)
R E APhiladelphia
L L Y G R E A T S I T E . C O MFed Survey (Philly Fed)

KororFX KororFX KororFX +252 615 47 01 22


FUNDAMENTAL CONTENTS
BEST TIME TO TRADE CURRENCY PAIRS AND GOLD
MENTOR

Abdiwahab H. Abdalle

Pairs Timings

GOLD 5PM-9PM

EURUSD 5PM-9PM

USDCAD 5PM-9PM

USDJPY 11:AM-3PM

GBPJPY 11AM-3PM

US30 5PM-9PM
[Link]
AUDUSD 6AM-12PM

KororFX KororFX KororFX +252 615 47 01 22


FUNDAMENTAL CONTENTS
MAJOR ECONOMIC INDICATORS
MENTOR

Abdiwahab H. Abdalle

Production:- Anything that this country makes,


through these indicators, the Central Bank can see
whether a country is being productive or not. (PMI)

Geopolitical:- Non-Economic things that can cause


risk in the market. e.g, Change in Government, wars,
natural disasters, etc

Employment:- How many people are or are not


employed (NFP)

Inflation: How the cost of goods and Services is


moving. (CPI)
[Link]

KororFX KororFX KororFX +252 615 47 01 22


FUNDAMENTAL CONTENTS
PAY ATTENTION TO NEWS
MENTOR

Abdiwahab H. Abdalle

[Link] - Read articles in the currency section, pay attention to


articles that gives information on the reasons for a particular move in a
currency and the analyst expectations for the possible continuation of
that move. if we see a certain currency dropping, then the articles could
explain why a certain currency pair is doing what it is.

[Link] - News calendar, this allows you to see a list of economic


data that will be coming out. such as PMI Numbers, interest rates, CPI ,
NFT etc.

RECAP: - Focus on what the central Bank is focusing on which is normally


one or two things.

whenever you get a news release, you should always asking yourself
‘’How will the Central Bank view this on the economy.’’

I HOPE THIS DOCUMENT WILL HELP YOU UNDERSTANT


RTHE
E A L L Y GBASICS
R E A T S I T E . C OOF
M FUNDAMENTAL NEWS

Prepared By:
Abdiwahab H. Abdalle
“@KororFX”

KororFX KororFX KororFX +252 615 47 01 22

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