Currency Correlation Table
See how 8 major forex pairs move together or inversely. Manage risk by understanding correlation between your positions.
| Pair | EUR/USD | GBP/USD | USD/JPY | USD/CHF | AUD/USD | USD/CAD | NZD/USD | XAU/USD |
|---|---|---|---|---|---|---|---|---|
| EUR/USD | 1.00 | 0.92Strong + | -0.78Moderate − | -0.87Strong − | 0.76Moderate + | -0.81Strong − | 0.72Moderate + | 0.58Moderate + |
| GBP/USD | 0.92Strong + | 1.00 | -0.71Moderate − | -0.82Strong − | 0.80Strong + | -0.74Moderate − | 0.75Moderate + | 0.52Moderate + |
| USD/JPY | -0.78Moderate − | -0.71Moderate − | 1.00 | 0.65Moderate + | -0.62Moderate − | 0.70Moderate + | -0.58Moderate − | -0.44Weak |
| USD/CHF | -0.87Strong − | -0.82Strong − | 0.65Moderate + | 1.00 | -0.68Moderate − | 0.75Moderate + | -0.65Moderate − | -0.48Weak |
| AUD/USD | 0.76Moderate + | 0.80Strong + | -0.62Moderate − | -0.68Moderate − | 1.00 | -0.62Moderate − | 0.88Strong + | 0.45Weak |
| USD/CAD | -0.81Strong − | -0.74Moderate − | 0.70Moderate + | 0.75Moderate + | -0.62Moderate − | 1.00 | -0.60Moderate − | -0.50Weak |
| NZD/USD | 0.72Moderate + | 0.75Moderate + | -0.58Moderate − | -0.65Moderate − | 0.88Strong + | -0.60Moderate − | 1.00 | 0.38Weak |
| XAU/USD | 0.58Moderate + | 0.52Moderate + | -0.44Weak | -0.48Weak | 0.45Weak | -0.50Weak | 0.38Weak | 1.00 |
ℹ️ Values are approximate quarterly averages (Q1 2025). Correlations change over time — review quarterly. Data based on daily close prices.
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Key Correlation Insights
EUR/USD & GBP/USD (+0.92)
Highly correlated. Both are USD-denominated and respond similarly to USD strength/weakness. Trading both longs doubles your USD exposure.
EUR/USD & USD/CHF (−0.87)
Strong inverse correlation. CHF is a safe-haven like EUR. When EUR/USD rises, USD/CHF typically falls by a similar magnitude.
AUD/USD & NZD/USD (+0.88)
Very high correlation — both antipodean currencies closely linked to commodity prices and Chinese economic activity.
USD/CAD & EUR/USD (−0.81)
Strongly inverse. CAD is a commodity currency closely tied to oil. USD/CAD moves opposite to EUR/USD in most market conditions.
XAU/USD & EUR/USD (+0.58)
Moderate positive correlation. Gold often benefits from USD weakness, similar to EUR/USD. But gold has its own safe-haven premium.
USD/JPY & EUR/USD (−0.78)
Strong inverse. JPY is a safe-haven currency. USD/JPY rises when USD is strong, which typically means EUR/USD falls.
FAQ
What does correlation mean in forex?
Correlation measures how two currency pairs move in relation to each other. +1.0 = always move together, −1.0 = always move opposite, 0 = no relationship.
How do I use correlation for risk management?
Avoid holding multiple highly-correlated positions simultaneously — it multiplies your risk. If EUR/USD and GBP/USD are +0.92 correlated, trading both longs is nearly the same as doubling your EUR/USD position.
Do correlations change over time?
Yes. Correlations shift based on market conditions, economic cycles, and central bank policies. The table shows Q1 2025 approximations — review correlation data quarterly for accuracy.
Which pairs are good for diversification?
Pairs with low or near-zero correlation offer the best diversification. XAU/USD has a moderate but not extreme correlation with most forex pairs, making it a useful portfolio diversifier.