Currency Correlation Matrix
View approximate correlation coefficients between 8 major forex pairs. Identify hedging opportunities and avoid doubling exposure.
Approximate 90-day correlation coefficients between major forex pairs. Green indicates strong positive correlation, red strong negative, amber weak.
| EUR/USD | GBP/USD | USD/JPY | USD/CHF | AUD/USD | USD/CAD | NZD/USD | EUR/GBP | |
|---|---|---|---|---|---|---|---|---|
| EUR/USD | 1.00 | 0.87 | -0.51 | -0.92 | 0.72 | -0.68 | 0.67 | 0.32 |
| GBP/USD | 0.87 | 1.00 | -0.42 | -0.84 | 0.69 | -0.62 | 0.63 | -0.28 |
| USD/JPY | -0.51 | -0.42 | 1.00 | 0.60 | -0.34 | 0.48 | -0.31 | -0.15 |
| USD/CHF | -0.92 | -0.84 | 0.60 | 1.00 | -0.64 | 0.71 | -0.59 | -0.22 |
| AUD/USD | 0.72 | 0.69 | -0.34 | -0.64 | 1.00 | -0.74 | 0.91 | 0.12 |
| USD/CAD | -0.68 | -0.62 | 0.48 | 0.71 | -0.74 | 1.00 | -0.70 | -0.14 |
| NZD/USD | 0.67 | 0.63 | -0.31 | -0.59 | 0.91 | -0.70 | 1.00 | 0.11 |
| EUR/GBP | 0.32 | -0.28 | -0.15 | -0.22 | 0.12 | -0.14 | 0.11 | 1.00 |
Strong positive (≥0.7)Strong negative (≤-0.7) Weak (-0.4 to 0.4)
FAQ
What does a correlation of -1 or +1 mean?›
A correlation of +1 means two pairs move in perfect lockstep. A correlation of -1 means they move in exactly opposite directions. Values near 0 indicate little to no linear relationship.
How should I use the correlation matrix?›
Avoid taking same-direction trades on highly correlated pairs (e.g., EUR/USD and GBP/USD) as it doubles your exposure. Use negatively correlated pairs for hedging strategies.