G10 FX rates have had the strongest correlations with global equity market performance over the past month. Global equity markets have rebounded as fears over a harder landing for the global economy have eased. The AUD and CAD have had the strongest correlations to developed market equity performance, and the SEK to emerging market equity performance. The CHF and JPY have had the weakest correlations to global equity market performance.
Most G10 currencies have strengthened against the USD encouraged by China reopening optimism. G10 FX correlations with the price of copper are relatively similar apart from for the CHF and JPY that have had weaker correlations.
US rates have become less important in driving G10 FX rates over the past month. It is especially the case for USD/JPY which has been driven more by expectations for a change in BoJ policy more recently. Cable has had the strongest correlation to short-term US rates and USD/CAD the least over the past month
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