♻️EUR/USD Detached From Global Risk: Cable FX Macro

**As seen in Macro Walk report 05/12/23, subscribe at cablefxm.co.uk/reports

• The cross-asset correlation section in our Macro Walk report showed the short-term coefficient between EUR/USD and global risk diverging from its long-term

• The bottom table of the cross-asset correlation section shows the difference between the short-term and long-term coefficients. When the figure is negative, as it shows in EUR/USD vs the MSCI All World Index, this means that short-term correlations are no longer statistically valid. In other words, the relationship between two variables is breaking relative to its previous history

• The MSCI All World Index has traded relatively unchanged over the month of May, however, the EUR/USD is extending losses. The decoupling has sent the 25-day correlation coefficient to almost null, this compares to the 100-day coefficient of 61%