Relative Strength of Majors vs Gold
A good measure of risk on / risk off sentiment is the relative strength of a currency against gold.
The strength is inverted since XAU is the denominator in the equation.
In the last quarter of 2018 we can see that the save heaven currencies (USD, CHF and YEN) are the strongest and AUD and NZD are the weakest.
The strength is inverted since XAU is the denominator in the equation.
In the last quarter of 2018 we can see that the save heaven currencies (USD, CHF and YEN) are the strongest and AUD and NZD are the weakest.
Sultan of Swing