Currency correlation

Currency correlation is like having two friends who do things together a lot. When one of them does something, the other one usually does the same thing in a similar way.

For example, when one friend buys a toy, the other friend also buys the same toy. They may not buy the exact same thing, but they usually end up buying something that is similar. When it comes to currencies, this is called correlation.

The value of one currency compared to another can influence how they move and change. So, when one currency is strong or weak, the other currency may move in a similar way. This is because their values are linked.

This is why it's important to look at how different currencies are related to each other when investing. This way, you can get a better understanding of how the markets will move and how you can make the best decisions for your investments.