What is currency correlationWhat is currency correlation in forex trading? In the forex... More in forex trading?
In the , correlation is one of the most important concepts.
Correlation means that two sets of data influence each other to a certain degree, i.e. they are dependent and not statistically independent. For currencyWhat is currency? Currencies are the generally accepted medi... More correlation, the data sets are the of two different .
The correlation is based mostly on economic dependencies and monetary policyMonetary policy is the process by which the monetary author... More. For example, the economies of , the and the are strongly interwoven. This means that when one of their currencies (, and ) wins or loses against the dollar, it is likely that the other two currencies develop similarly.
Please note that because of the orderWhat is a trade order? In trading, an order can be defined... More of the and in the currency pairs, is negatively correlated with , even though the EUR and the CHF are positively correlated with each other.
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