🔺🔻Gold-Dollar Negative Correlation Has Room to Widen: Cable FX Macro

• Our measure of the dollar vs G10FX peers has seen losses in recent sessions, the index is tracking a decline of 3.5% over the last month. Pressure is attributed to low yielders, as the Swiss franc records gains of almost 7.0% vs the dollar over the last month.

• Risk assets have been hit and sparked bids for the yen and the franc, both outperform G10 peers over the last month. The risk off trade has also seen gold rising to record highs, the chart below shows a normalized historic performance of spot gold vs Cable FX Macro Dollar Index

• Spot gold and the dollar 120-day correlation coefficient is now close to -0.4, however, this is relatively insignificant looking back to the last five years. The median coefficient sits closer to -0.45 and it has reached levels at -0.7.