CORRELATION OF FOREX PAIRS WITH OIL AND GOLD PART 1 скачать в хорошем качестве

CORRELATION OF FOREX PAIRS WITH OIL AND GOLD PART 1

1. Currency Pairs and Oil: Positive Correlation: Oil prices and currencies of oil-exporting countries often have a positive correlation. When oil prices rise, the revenues of oil-exporting countries increase, leading to stronger economic performance and, in turn, a stronger national currency. For example, the Canadian dollar (CAD) is positively correlated with oil prices because Canada is a major oil exporter. Negative Correlation: Some currencies, like the US dollar (USD), can have a negative correlation with oil prices. When oil prices rise, it can lead to increased production costs for many industries, causing inflationary pressures. Central banks, like the Federal Reserve in the US, might respond by raising interest rates to curb inflation, which can lead to a stronger national currency (USD, in this case) in the short term. 2. Currency Pairs and Gold: Negative Correlation: Historically, there has been a negative correlation between the US dollar and gold prices. When the US dollar strengthens, gold becomes more expensive for holders of other currencies, potentially decreasing demand and leading to a drop in gold prices. Conversely, when the US dollar weakens, gold becomes relatively cheaper for holders of other currencies, increasing demand and driving up gold prices. 3. Oil and Gold: Positive Correlation: Oil and gold prices can exhibit a positive correlation during times of economic uncertainty or geopolitical tension. Both commodities are considered safe-haven assets in times of crisis. When there are concerns about geopolitical stability or economic downturns, investors may flock to both oil and gold, leading to a simultaneous increase in their prices. Why Are They Correlated? Global Economic Factors: Economic events, such as inflation rates, interest rate decisions, and overall economic stability, can influence the prices of currencies, oil, and gold simultaneously. Geopolitical Events: Political tensions, conflicts, or natural disasters in oil-producing regions can impact both oil prices and the currencies of the countries involved. Similarly, geopolitical uncertainty can drive investors towards safe-haven assets like gold and certain currencies, leading to correlations. Market Sentiment: Investor perception and sentiment can play a significant role. Positive or negative news about the global economy, trade relations, or political stability can influence market sentiment, affecting currency, oil, and gold prices collectively. Central Bank Policies: Monetary policies, interest rate decisions, and quantitative easing measures undertaken by central banks can impact both currency values and commodity prices. It's important to note that these correlations are not constant and can change based on shifting market dynamics, economic policies, and geopolitical developments. Traders and investors closely monitor these relationships to make informed decisions in the financial markets. #forex #forextrading #forextrader LINK TO ALL MY SOCIAL MEDIA DOWN BELOW https://linktr.ee/LOTSFXACADEMY Don't Forget to hit that like botton for more videos!!!!!!