EU/GU Recent Inverse Correlation

Anyone know the reason for this seems to have been the last few weekly has changed from moving similar to inversely? UC doesn't seem to be in sync either with the EU?

it depends on the third pair of the ring ...in case of eurusd usdchf , the third is eurchf, and it has been stuck at 1.20 for several months, hence the correlaction between eu and uc was nearly perfect .
that should be the case for eurgbp in the eu and gu correlation ....i only trade the 3 pairs together , because the correlation is perfect

Market was waiting for Italian Election. Also downgrade of UK credit rating by Moody's.

.

Most likely due to the GU.
Started in around Jan 10th with some rumors and then finally Cameron mentioning a
possible referendum in a few years for the UK dropping out of the EU. ..That, couple with the rating drop
most likely the contributing factors to the GU drop and negative EU/GU correlation.

Have no idea of how the fundamental are playing with the "dropping out" idea.

Like Tarrini mentions. Never a good idea to trade 2 pairs correlation by itself. The 3rd
pair, in this case the EG makes the best possible coverage for this type of situations.

J.