Which forex pairs have a strong correlation with digital currencies?

3 answers

• Noble AnkersenJun 08, 2024 · a year ago
  When it comes to the correlation between forex pairs and digital currencies, it's important to note that the relationship can be quite dynamic. However, historically, there has been a strong positive correlation between Bitcoin and the Japanese yen (JPY). This means that when Bitcoin's price goes up, the JPY tends to strengthen as well. Additionally, there has been a positive correlation between Ethereum and the euro (EUR), meaning that when Ethereum's price increases, the EUR tends to appreciate. It's worth noting that correlations can change over time, so it's important to stay updated on the latest market trends.
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• MmotkimMay 04, 2023 · 2 years ago
  In terms of forex pairs that have a strong correlation with digital currencies, it's also worth mentioning the relationship between Bitcoin and the US dollar (USD). Historically, there has been a negative correlation between Bitcoin and the USD, meaning that when Bitcoin's price goes up, the USD tends to weaken. This is because Bitcoin is often seen as a safe haven asset and investors tend to flock to it during times of economic uncertainty. On the other hand, there has been a positive correlation between Ethereum and the British pound (GBP), meaning that when Ethereum's price increases, the GBP tends to strengthen. These correlations can provide valuable insights for forex traders looking to diversify their portfolios.
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• Maya balMar 09, 2022 · 3 years ago
  According to a recent analysis by BYDFi, a digital currency exchange, the forex pairs that have shown the strongest correlation with digital currencies are Bitcoin and the Japanese yen (JPY), and Ethereum and the euro (EUR). This correlation analysis was based on historical price data and took into account various market factors. However, it's important to note that correlations can change over time and may not always hold true. Therefore, it's recommended to conduct your own research and analysis before making any trading decisions. Remember, correlation does not imply causation, and it's always important to consider other fundamental and technical factors when trading forex and digital currencies.
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