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Here’s how 3 dollar correlations have fallen apart in 2017
Investors looking at historic correlations to predict the path of the U.S. dollar could get burned, as three such links with other assets, including gold and Treasurys, appeared to have broken down in 2017, wrote George Davis, chief technical strategist at RBC Capital Markets, in a Thursday note. 1. The dollar and U.S. yields The U.S. dollar usually takes its cues from U.S. Treasurys, but around late October, that relationship seemed to weaken and the correlation fell to 0.45 from 0.56 before, according to the RBC report. A positive reading of 1.0 would be a perfect correlation, meaning the assets always trade in the ... (full story)