Cheat Sheet for Intermarket Analysis

Intermarket research looks at how different asset classes, for example currencies, bonds, commodities, and stocks, interact.

It can assist traders in generating larger trading ideas, identifying probable market turning points, and validating other analysis approaches.

Currency price movements are often influenced by their relationship with commodities, bonds, and stock indices.

Here are some examples of conventional intermarket relationships:

• A declining US dollar is regarded as good for commodity prices, whilst a rising US dollar is considered negative.

• Lowering bond prices and rising interest rates are usually negative for equities, while rising bond prices and falling interest rates are usually positive.

• Historically, rising commodity prices have been an indicator of economic expansion, which is good for the stock market but bad for bond prices.

Thats a lot of market correlations to keep track of! And they are only a few examples of intermarket relationships.

Heres a handy one-paged cheat sheet that you can save to make things easier for yourself!

IF	THEN	WHY
Gold	USD	Investors tend to abandon the dollar in favor of gold during times of uncertainty. Gold, unlike other assets, retains it inherit worth.
Gold	AUD/USD	Australia is the world‘s third-largest gold producer, exporting around $5 billion worth of gold each year.
Gold	NZD/USD	New Zealand (number 25) is also a major gold produce.
Gold	USD/CHF	Gold backs up more than a quarter of Switzerland’s reserve. As gold prices rise, the pair falls (CHF is bought).
Gold	USD/CAD	Canada is the worlds fifth-largest gold producer. When the price of Gold rises, the pair tends to fall (CAD is bought).
Oil	USD/CAD	Canada is one of the world's top five oil producers. It exports 5.5 million barrels of oil per day to the United States. As oil prices rise, the pair falls.
Gold	EUR/USD	Because gold and the euro are both considered “anti-dollars,” if gold prices rise, the EUR/USD may rise as well.
Bond yields	Local Currency	Higher bond returns attract greater investment to a country's economy. This makes its local currency more appealing than the currency of another economy, resulting in lower bond yields.
Dow	Nikkei	The economy of the United States is inextricably linked to that of Japan.
Nikkei	USD/JPY	The yen is seen as a safe haven currency by investors, who seek it out during times of economic uncertainty.