Visual correlation matrix for major forex pairs, indices, and commodities.
+1.0= move in perfect unison | 0= no relationship | -1.0 = move in opposite directions
| EUR/USD | GBP/USD | USD/JPY | USD/CHF | AUD/USD | NZD/USD | USD/CAD | Gold | DXY | S&P 500 | Nasdaq | BTC/USD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EUR/USD | 1.00 | +0.87 | -0.35 | -0.92 | +0.71 | +0.68 | -0.62 | +0.55 | -0.95 | +0.25 | +0.22 | +0.15 |
| GBP/USD | +0.87 | 1.00 | -0.28 | -0.82 | +0.65 | +0.60 | -0.55 | +0.42 | -0.88 | +0.30 | +0.28 | +0.12 |
| USD/JPY | -0.35 | -0.28 | 1.00 | +0.40 | -0.15 | -0.12 | +0.32 | -0.45 | +0.52 | +0.35 | +0.33 | +0.10 |
| USD/CHF | -0.92 | -0.82 | +0.40 | 1.00 | -0.68 | -0.65 | +0.58 | -0.60 | +0.90 | -0.20 | -0.18 | -0.10 |
| AUD/USD | +0.71 | +0.65 | -0.15 | -0.68 | 1.00 | +0.92 | -0.70 | +0.65 | -0.75 | +0.45 | +0.42 | +0.30 |
| NZD/USD | +0.68 | +0.60 | -0.12 | -0.65 | +0.92 | 1.00 | -0.65 | +0.55 | -0.72 | +0.40 | +0.38 | +0.28 |
| USD/CAD | -0.62 | -0.55 | +0.32 | +0.58 | -0.70 | -0.65 | 1.00 | -0.45 | +0.68 | -0.22 | -0.20 | -0.12 |
| Gold | +0.55 | +0.42 | -0.45 | -0.60 | +0.65 | +0.55 | -0.45 | 1.00 | -0.65 | +0.10 | +0.08 | +0.35 |
| DXY | -0.95 | -0.88 | +0.52 | +0.90 | -0.75 | -0.72 | +0.68 | -0.65 | 1.00 | -0.20 | -0.18 | -0.15 |
| S&P 500 | +0.25 | +0.30 | +0.35 | -0.20 | +0.45 | +0.40 | -0.22 | +0.10 | -0.20 | 1.00 | +0.95 | +0.45 |
| Nasdaq | +0.22 | +0.28 | +0.33 | -0.18 | +0.42 | +0.38 | -0.20 | +0.08 | -0.18 | +0.95 | 1.00 | +0.50 |
| BTC/USD | +0.15 | +0.12 | +0.10 | -0.10 | +0.30 | +0.28 | -0.12 | +0.35 | -0.15 | +0.45 | +0.50 | 1.00 |
Showing notable correlations. Rotate device for full matrix.
EUR/USD
GBP/USD
USD/JPY
USD/CHF
AUD/USD
NZD/USD
USD/CAD
Gold
DXY
S&P 500
Nasdaq
BTC/USD
If EUR/USD and GBP/USD are highly correlated (+0.87), going long on both is essentially doubling your position. You're taking on 2x risk for what is largely the same trade. Choose the stronger setup.
EUR/USD and USD/CHF move in opposite directions (-0.92). If you're long EUR/USD and want to reduce risk, a partial long on USD/CHF can act as a hedge. This limits both your downside and upside.
If you see a bullish signal on EUR/USD, check correlated pairs. Is GBP/USD also showing bullish structure? Is DXY showing weakness? Confluence across correlated instruments adds confidence.
When normally correlated pairs diverge (e.g., EUR/USD rallies but GBP/USD doesn't), it can signal that one will revert. Divergences often precede mean-reversion moves or indicate pair-specific news.
Calculate your net exposure. If you're long EUR/USD, AUD/USD, and GBP/USD, you are heavily short USD across all three. A single strong dollar move will hit every position. Diversify across uncorrelated instruments.
Important: Correlations are not static. They shift with market regimes, central bank policy, and risk sentiment. A pair correlated at +0.85 during trending markets may drop to +0.40 during consolidation. Always check current correlations before relying on them.