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Writer's pictureRosbel Durán

❗️ Correlations: EUR Diverge from Equities, XAU

**As seen in Macro Walk Report 11/12/21 cablefxm.co.uk/reports

  • As seen in the Correlations'section of the Macro Walk weekly issues, EUR has lost its long-term correlation to World Equities (measured as EUR/JPY, VT), turned negatively correlated to Gold (EUR/USD, XAUUSD)

  • We can spot the divergences in the third table of the Correlations sheet (25D-100D). The table measures the absolute difference between the 25-day rolling correlation and the 100-day rolling correlation

  • The latest read shows a negative print for EUR/JPY vs. World Equities (-0.54), this means that the 100-day rolling correlation is higher than the 25-day. In other words, a divergence is seen between euro-yen cross and equities, in the short-term.




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