Financial Times FT.com

The Short View: Correlation

By John Authers, Investment Editor

Published: November 13 2007 19:35 | Last updated: November 13 2007 19:35

Whether in forex or equities, this week’s pattern is the same: down with a thud on Monday, and a rebound on Tuesday.

These trends are linked. Viewed on a graph, the euro-yen exchange rate and world stock indices are identical. They move in tandem, with stocks falling with the euro and rebounding with falls in the yen.

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