Currency pairs don’t move in isolation; understanding correlations can enhance your trading strategy. For instance, EUR/USD and GBP/USD often move in the same direction due to their shared relationship with the USD. Meanwhile, USD/JPY and gold prices typically show an inverse correlation, as investors move between safe-haven assets. Use correlation matrices to identify strong or weak relationships between pairs and adjust your trades accordingly to diversify or hedge risks. Ignoring correlations can lead to overexposure, while leveraging them strategically can multiply profits. Correlations are a trader’s hidden ally