April 14 (Friday): USD Index vs GBP Index (Course: All assets are interconnected)

Good morning☀

Since there was also a request, I’m planning to explain FX as well.

However, compared to the Nikkei 225, the correlation is a little weak, so

this time I will compare the strength of the dollar itself (the Dollar Index) with the popular pound dollar, and explore what kind of movement the dollar might have in the future.

I’m thinking of finding out.

For those who may remember, this is a review?

What is the Dollar Index?

https://www.gogojungle.co.jp/finance/navi/articles/51217

This explains it once, so please take a look m(_ _"m)

Dollar Index ≒ Dollar Euro

Therefore, it should also be a guide for EUR/USD.

The comparison this time is“Dollar Index VS Pound Dollar”but

In other words,

the comparison is equivalent to “Dollar Euro VS Pound Dollar.”

The dollar’s [negative correlation]can also be said, so

please also refer to it for FX traders.

If this comparison reveals the direction of the dollar, it will help interpret the movement of U.S. indicators, and as a result it will eventually connect to the Nikkei 225.

Stocks, indices, and FX are all connected in the world.

Therefore, analyzing charts of various stocks is not meaningless.

If you have time, try analyzing various charts.

And try to build scenarios.

There must be hints somewhere.

Incidentally, during my twenties when I did stock trading as a side job.

I conducted 100-stock chart analyses.

The Tokyo Stock Exchange First Section has 33 sector classifications.

From each sector, three stocks are selected

33 sectors × 3 stocks = 99 stocks

AndNikkei 225together100 stocksin total.

Even within sectors, company size varies, so charts differ.

There are things that move markedly in advance, and various others…

But since they are in the same industry, their peaks and troughs often have a certain [correlation].

And since sectors influence one another, you’ll often see correlation between sectors.

Stock traders, please examine the [correlation] between sectors and within sectors; you’ll likely discover something new.

For those who diversify, please also carefully watch the correlations between sectors.

Incidentally, Iam a single-stock focused trader.

In this way I trading with an awareness of correlations even back when I was in stocks, right?

That’s why I still believe correlations are important today, I think?

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