● Interpretation and

correlation between
currency and
fundamental / what makes
these pairs move
○ JPY:

◆ a safe haven for the

asian market.
Investors put their
money in the JPY if
other countries are
not doing well. If
other asian countries
are doing bad the
JPY goes up and vise
versa (Ex. If the
Chinese economy is
starting to rise I take
my money out of
Japan to convert and
invest in X in china
making the JPY
bearish)
◆ The Japanese are

very safe and

conservative with
their monetary policy
(every rule about
money) and it is the
most stable country
in Japan making it a
safe haven
◆ The JPY is in direct
 correlation with the
USD (if US places
tariffs on china then
china devalues and
the JPY rises along
with USD) an
example of whatʼs
happening now with
US/china talks
○ AUD:
◆ Its principle

economic partner is
china. When AUD is
doing well so is china
and vice versa
◆ Their connection is

due to the proximity

of china to Australia
and direct link to
their imports
◆ Great producer of

Gold. When the value

of gold rises so does
the value of AUD and
indirectly affects the
US.
◆ AUD and USD are

inversely correlated.
○ NZD:
◆ it follows the AUD

and indirectly
dependent on china
because of this.
 ◆ Correlated more with
AUD
◆ Huge part of their

economy is based on
dairy products (big
news sector to watch
out for)
○ GBP:
◆ The relationship with

EU (imports and
exports) right now its
anything that has to
do with Brexit
◆ Everything that has

to do with monetary
policy (interest rates,
inflation, meetings
about monetary
policies)
○ EUR:
◆ Monetary policy for

Europe
◆ Relationship/conflicts

inside the EU
◆ Relationship with UK

◆ EUR is more

sensitive to the
downside than
upside because
many countries in
Europe that can
negatively affect it.
○ CHF:
 ◆ Safe haven for the
EUR
◆ Its the only country

in Europe that has its

own currency
◆ If the EUR is doing

bad, investors
convert their money
into CHF until EUR
strengthens again
◆ When EUR is down

the CHF is up/

inverse correlation
○ USD:
◆ Equity/stock market

(biggest in the world)

◆ International

relationships (right
now its with china)
◆ Everything that has

to do with the
housing and
employment markets
◆ Inverse correlated to

XAU
○ CAD:
◆ Oil, Canada is a big

producer of oil so as
oil goes up the CAD
rises as well
◆ Relationship with the

US (if thereʼs a deal

with the US you will
 see movement)
◆ Everything that has

to do with monetary
policy (considered a
safer place to put
your money than the
US)
○ GOLD:
◆ Safe haven for North

America
◆ Inversely correlated

to the USD
◆ Sensitive to

international conflict
(last year we had Kim
Jong Un battling with
Trump and gold went
up because investors
are taking their
money out of the US
and put it in in gold
before something
happens between
the countrioes)