| | | | | 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.
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Best regards,
David Rodríguez, Quantitative Strategist
drodriguez@dailyfx.com |
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