#firstdealofthenewyearFateema currency correlation refers to the relationship between price movements of two or more currencies.it measures how the exchange rates of currency pairs move in relation to each other. Types of currency correlation 1.positive correlation:when two currencies move in the same direction e.g EUR/USD 2.Negative Correlation:when two currencies move in opposite directions e.g EUR/USD and USD/JPY 3.Zero Correlation:when two currencies move independently of each other,EUR/USD and AUD/NZD.