It's not every day that the U.S. dollar breaks away from its safe-haven reputation. Let me show you how the past couple of days have been perfect examples showing the Treasury bond yields-U.S. dollar correlation.

Extra! Extra! Read all about it! Inverse correlation between equities and dollar value breaks! Here to stay? Or simply a major fluke?

I am painfully aware, through real money loss, correlation is not causation. And often said correlation can break down just at the worst time—when you bet on it. Even more concerning is the belief diversification of portfolios is based on the idea of “non-correlation.”

I guess it is no different this time. There are always more questions than answers. I guess the first question is: Are we finally seeing a change to the "all one market" liquidity-driven correlations in global markets?

Yesterday was a weird day. I say that because the correlations seemed all screwed up. Bonds were weak, commodities were basically flat to mixed (except for the precious kind), US stocks flattish, and yet the currencies were signaling risk appetite is back; well, except for the yen which strengthened big time yesterday (before intervention this morning).

The EUR/JPY has formed a Triangle pattern on the 60-minute chart, with prices squeezed into a narrow trading range between 125.55 and 125.05. The current market support above the 125.00 "big figure" level...

We recently warned of the potential for changing correlations, no sooner was the ink dry than we noticed a a big one concerning gold and the US dollar index...

The correlation between stocks and currencies is working; risk-appetite at its finest. But say we didn't have this connection ... say a 0.023% rise in the S&P 500 didn't equate to the same 0.023% rise in the Australian dollar or euro or whatever.

Ok maybe not but the Philly Fed Index did drop to -4.3 compared to last month's index which was at 5.1. This was much lower than the expected 3.0 figure that was forecasted and shows that the manufacturing sector is still softening. Recall that the Empire index was relatively flat, and even though it's usually firmer than the Philly Index, this is a wider than normal difference between the 2 reports. However, if you look at the entire picture, it actually makes sense that the manufacturing sector is decreasing.

Check out this chart. You’ll see that there’s a pretty tight correlation between the dollar and crude. When the black stuff rises, the dollar falls. And vice versa. The black line represents crude oil futures and blue represents the US$ Dollar Index (inverted).

A lot of interesting and unusual price action in USD/JPY of late, i.e. the correlation between the yen and stocks and yen and yield spread has changed.

A little alliteration to punctuate a plausible picture of EUR/USD weekly…note the ongoing directional correlation between EUR/USD and the 2-year benchmark yield spread(blue line) in the chart below.

To show a market correlation is to show a market correlation. That is about it. The reason I say that is because we can never really be sure which of the pieces of price data in the correlation is leading and which is following.

Gold and the Australian dollar may have shared a strong bond in the past, but how has their unique correlation fared so far in 2013?

There’s a reason why Canadian dollar traders keep track of oil prices– the two often move hand in hand. But how has the oil-Canadian dollar correlation been holding this year?

There has been an interesting on again/off again correlation between gold and the euro. Lately, gold and the euro have been positively correlated, i.e. both moving higher against the US dollar.

We said what is interesting about this chart is the fact gold and the US dollar have moved in a positive correlation lately. We've highlighted the area on the chart roughly where you can see the two price series started moving together. This isn't usually the case as you well know.

Gold may be telling us a story. That story likely goes far beyond the run of the mill US dollar weakness we hear daily; otherwise the US dollar based on pure correlation would be well into all-time new low territory and free fall (not to suggest it can't get there still).

Just a while back, one could probably say that there was a strong correlation among higher-yielding currencies. But now, I'm not sure if we should include the pound into that equation, given the crazy and wild swings by pound pairs the past couple of weeks.

A couple of days back, I wrote about the aftermath of the NFP report from last Friday. I mentioned that the way currency markets reacted to the event hinted that the inverse correlation between equity markets and the

Another head shaker it seems. Just when we were warming to the idea of gold and the US$ moving arm in arm, the correlation breaks down or maybe pauses or maybe never was; either way we are now back to the old game of higher dollar and lower gold

There are two “market pulse” charts to watch for secondary confirmation when trading the USD/JPY, the dollar and dow. However, the USD/JPY has a unique and strong correlation to the Dow and this is one sympathetic relationship that is commonly overlooked.

A futures trading background helped me realize that not all forex traders are aware of the future-forex correlation or how to use them properly.

I received an email from a reader that contained an interesting fact: Seven separate assets currently maintain an 85% correlation (or better) with the S&P 500 over the last six months.

We are guessing the "momentous historical development" that launches the US dollar into a new multi-year bull trend was the credit crunch. It is a game changer on risk appetite and correlation of every asset class (but the dollar) going up at the same time, as the dollar credit was the driver

As the Euro regained its strength today, the Sterling continued to lose its hold on the Dollar. Usually these pairs have a pretty strong positive correlation, but this is one time they are looking like polar opposites!

This pair has been trending to the downside, but recently we’ve seen a nice run up. This is most likely due to a bounce back in metals in which the Aussie dollar has a strong correlation to, and recent mixed news coming out of the US. Like they always say, “the trend is your friend” …