Do correlations ever break?

Yes, absolutely. During major fundamental changes (like Brexit affecting GBP specifically), pairs that normally move together can diverge significantly. Always check current correlation data, not historical averages.

Where can I find correlation data?

TradingView has a comparison tool. Many broker platforms offer correlation matrices. Websites like myfxbook have free correlation calculators. You can set different timeframes (daily, weekly, monthly).

What timeframe should I use for correlation analysis?

This depends on your trading style. Day traders might look at 4-hour or daily correlations. Swing traders often use weekly. The shorter the timeframe, the more volatile the correlation readings.

Can I profit from correlation breaking down?

Yes, this is called "pairs trading" or "statistical arbitrage." If EUR/USD and GBP/USD diverge when they usually move together, you might buy the lagging one and sell the leading one, expecting them to converge. This is an advanced strategy.

Should I avoid all correlated trades?

Not necessarily. If your analysis strongly supports USD weakness, taking correlated trades is fine—just size them appropriately. Think of 3 correlated trades at 1% risk each rather than 3 trades at 2% risk each.

Fundamental Analysis

Currency Correlation Guide: Which Pairs Move Together

Understand currency correlations to diversify risk and find trading opportunities. Includes correlation matrix.

Written ByMarcus ThompsonTrading Platforms Expert

Fact Checked BySarah ChenSenior Financial Analyst

Last UpdatedNov 12, 2026

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Marcus Thompson

Trading Platforms • Technical Analysis • Execution Quality

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Marcus has been trading the forex markets since the early 2000s and specializes in platform evaluation. He tests every broker's trading platform, analyzing execution speed, charting tools, and user experience to give traders honest assessments.

Trading Platforms Expert — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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