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Options Trading Concepts Live - October 15, 2025 - tastyFX's Dollar Correlation Analysis Shows Market Regime in Flux
Manage episode 513806596 series 68544
In Wednesday's Options Trading Concepts Live, Glen provided a comprehensive U.S. dollar correlation analysis across multiple asset classes, revealing an undefined market regime with some surprising relationships. The analysis showed extreme correlations among dollar pairs, indicating U.S.-specific factors are driving price action despite the government shutdown. Euro-dollar and dollar-Swiss franc correlation reached 0.91, while dollar-CAD showed less correlation to other pairs at 0.6-0.7. Cross-asset correlations revealed classic relationships, with 10-year treasuries moving with dollar-yen, and Australian dollar showing exposure to gold, copper and S&P 500. Interestingly, crude oil and U.S. dollar currently show a positive correlation, though the hosts agreed this is likely coincidental rather than a tradable trend. The U.S. dollar/equities relationship remains unstable, flipping between positive and negative correlation throughout 2023, creating what Glen called "no-man's land" for traders seeking clear directional signals.
1645 episodes
Manage episode 513806596 series 68544
In Wednesday's Options Trading Concepts Live, Glen provided a comprehensive U.S. dollar correlation analysis across multiple asset classes, revealing an undefined market regime with some surprising relationships. The analysis showed extreme correlations among dollar pairs, indicating U.S.-specific factors are driving price action despite the government shutdown. Euro-dollar and dollar-Swiss franc correlation reached 0.91, while dollar-CAD showed less correlation to other pairs at 0.6-0.7. Cross-asset correlations revealed classic relationships, with 10-year treasuries moving with dollar-yen, and Australian dollar showing exposure to gold, copper and S&P 500. Interestingly, crude oil and U.S. dollar currently show a positive correlation, though the hosts agreed this is likely coincidental rather than a tradable trend. The U.S. dollar/equities relationship remains unstable, flipping between positive and negative correlation throughout 2023, creating what Glen called "no-man's land" for traders seeking clear directional signals.
1645 episodes
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