DailyFX Correlations: USDOLLAR Proxy for Dow, Loonie Trades with Crude Oil

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DailyFX: US Dollar Index Offers Proxy to Dow Jones, Aussie to Copper Prices The US Dollar's (ticker: USDOLLAR) correlation to the Dow Jones Industrial Average continues to trade near record strength, offering a strong proxy for stock market positions. All the while, the Canadian Dollar's link to crude oil provides a good alternative to speculation in the commodity price.   Forex market correlations to the Dow Jones and broader financial markets continue to trade near records, and currencies have likewise tracked commodity price moves with strong accuracy. Overall, these strong correlations imply that currencies can be traded as reasonable proxies for moves in other markets.   Strong currency correlations suggest that markets will mostly continue to move in tandem. This means that it remains critical to monitor moves in stock market and broader financial market sentiment when trading the US Dollar, Australian Dollar, and other major world currencies.   Download the Full Article Best regards, David Rodríguez, Quantitative Strategist drodriguez@dailyfx.com DailyFX Home | research@dailyfx.com | Contact US ©2009 DailyFX. All Rights Reserved. Forex Capital Markets, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. Forex Capital Markets, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Forex Capital Markets, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.

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