[FXGT] Correlation between Euro Dollar (EUR/USD), Dollar Yen (USD/JPY) and Gold


FXGT allows you to trade gold as well as exchange rates. It is said that the correlation with other markets is very important when trading. There is a strong correlation between Gold, Dollar Yen and Euro Dollar.

Correlation between dollar yen and gold

The dollar yen and gold are often inversely correlated. As a basic movement, as the risk increases, the yen will be bought, so the dollar yen will fall and the gold will rise. On the contrary, when the economy is booming and the situation is optimistic, gold will be sold and the US dollar will be bought. In this way, it is characterized by the fact that the relationship of inverse correlation is easy to establish. For this reason, it can be said that by showing the movement of one, the price movement of the other can be known in advance.

XAUUSD : 21-07-2023 1hour Leg Source: Tradingview

USD/JPY : 21-07-2023 1hour Leg Source: Tradingview

Eurodollar and Gold Correlation

In the case of EURUSD, it is correlated with gold, so in this case it shows a movement that is easy to link. For example, if the EURUSD is rising, gold will go up. And if the euro dollar falls, the price of gold will fall, so there is the advantage of being able to take measures in advance.

XAUUSD : 21-07-2023 1hour Leg Source: Tradingview

EUR/USD : 21-07-2023 1hour Leg Source: Tradingview

properties of gold

As has been the case for a long time, as epidemics and social unrest increase, the value of money becomes quite unstable. Because of this background, gold tends to be bought. This is exactly the same from ancient times to the present. Therefore, when the dollar, which is the key currency, is sold, gold is bought. If it is reversed, the opposite phenomenon is likely to occur.

Correlation between EURUSD and USDJPY

As you can see from the above, the relationship between EURUSD and USDJPY is inversely correlated. Both have the US dollar in them, so they are pulled in the opposite direction by the influence of the US dollar. Therefore, you can see not only gold but also the correlation between EURUSD and USDJPY. There are many people who are doing currency exchange trading between euro dollar and dollar yen, so I think it will be helpful.

Of course there are exceptions. Between the EUR/USD and USD/JPY, there are cases where only the EUR rises strongly, and there are also phases when only the JPY strengthens unilaterally, so it is necessary to pay close attention to economic indicators and political events.

You can open an account with FXGT for free

FXGT not only deals with exchange rates, but also gold. It is recommended to open an account because it is free and can be done immediately. Please see the article below for more information.