TRENDING:

GBP/USD

XAU/USD

Currency Market: USD/CAD vs GBP/JPY, EUR/JPY, CAD/CHF

Brian Twomey Brian's Investment

A mathematical division exists between and among currency pairs and prices. And ths division is how central banks price their respective currency pairs. Today's highlight is USD/CAD.

Note in Sunday's post for the mid point to 18 currency pairs equates to 1.2718. A vital number to view USD/CAD yet a vital number to insights for all 24 currency pairs. However today is USD/CAD.

USD/CAD Vs GBP/JPY

1.2686 USD/CAD Vs GBP/JPY 140.49. USD/CAD absolute top is located at 140.49 or 1.4049. The correlation between USD/CAD and GBP/JPY runs minus 96%. This means a GBP/JPY rise equates to a USD/CAD drop. A USD/CAD rise equates to a GBP/JPY drop.

The Correlation also means USD/CAD at 1.2686 to GBP/JPY 140.49 or 1.4049. Re arrange retains the same Correlation.

The division from 1.4049 is 0.1363 or a mid point at 1.3367.

Now we have 1.4049 and 1.3367 as absolute tops for USD/CAD.

Most vital is the crossovers for currency prices and as can be seen from the bottom 1 week chart, USD/CAD crossed below GBP/JPY. Confirms not only the Correlation but a terrific and profitable trade that required no knowledge nor anything to do except 2 clicks for GBP/JPY and USD/CAD.

USD/CAD Vs EUR/JPY

Now break down USD/CAD further to EUR/JPY for additional tops and trades. The USD/CAD Vs EUR/JPY Correlation runs minus 96% and matches perfectly to GBP/JPY. Both EUR/JPY and GBP/JPY are the same exact pairs so Correlation will always match to USD/CAD.

USD/CAD 1.2686 vs EUR/JPY 127.21 or 1.2721. Both are trading in sync. And this means warning to big moves due to the similarity of prices. Forget the names and focus on prices.

Now we have an additional top for USD/CAD at 1.2721. The mid point math division at 17 pips is located at 1.2703 USD/CAD.

Together we have perfect math divisons at 1.4049, 1.3367, 1.2721 and 1.2703.

Note the 1 week chart, EUR/JPY and USD/CAD already crossed and a great trade. EUR/JPY due to the similarity of prices to USD/CAD will respond much quicker than GBP/JPY's far away prices. Its the lead / lag to currency pair prices.

If EUR/JPY crossed USD/CAD then GBP/JPY will immediately follow. Now we have an earlt warning to a great and easy trade for big profits.

USD/CAD Vs CAD/CHF

CAD/CHF is found by division of USD/CHF and USD/CAD. The Correlation runs +44% and is fairly weak yet positive. CAD/CHF is a 0 point currency pair and not much assistance to USD/CAD except to know the Correlation is positive.

Then must view CHF/CAD at 1.4392 and USD/CAD 1.2721. A mid point at 0.0835 or USD/CAD 1.3556.

Together, we have 1.4049,1.3556, 1.3367, 1.2721 and 1.2703.

From the 1 week chart, CAD/CHF crossed above USD/CAD which means CAD/CHF, EUR/JPY and GBP/JPY crossed above USD/CAD and 4 trades.

Taken further as the mathematical division can go to every currency pair traded on the planet.

CAD/CHF 0.6934 Vs USD/CAD 1.2721 contains a mid point at 0.2893 and factors to 0.9827 or the AUD/CAD top.

See AUD/CAD highs Vs CAD/CHF 1 week chart

OR NZD/CAD Vs CAD/CHF

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull.

Gold retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).