I would like to learn more about correlations between different assets because I think it would enhance my proper trading decision on Forex before executing a trade position.
To my practical observation, the USDJPY and the Dow Jones have long been strongly correlated - a simple example. Like this, I do not know how to make a trading decision on whether to trade the USDJPY or not. Also, I know the Canadian dollar is a commodity-sensitive when oil price rises or falls that can impact the Canadian dollar. Any moves in the Canadian dollar do not move oil price.
I have another question on the US bond. How can the US bond move the US dollar? I am still trying to understand the relationship between the US bond and the US dollar, but I am still confused. Last year the US bond yield rose which helped the US dollar rising rapidly, but this year is different because the bond yield is falling lower but the US dollar strength is still not over yet but is possibly on about falling soon. This is what the Fed recently announced the possibility of rate cuts which benefits the equities.
Any help would be greatly appreciated.