Intermarket Analysis Cheat Sheet

That's a lot of inter-market correlations to remember so let's do a quick recap. The price action of currencies is often driven by their relationship with commodities, bonds, and stock indices.

Here's a neat one-page cheat sheet for you to bookmark and make it easy for you!

If	Then	Why
Gold	USD	During times of economic unrest, investors tend to dump the dollar in favor of gold. Unlike other assets, gold maintains its intrinsic value.
Gold	AUD/USD	Australia is the third biggest gold producer in the world, sailing out about $5 billion worth a year.
Gold	NZD/USD	New Zealand (rank 25) is also a large producer of gold.
Gold	USD/CHF	25% of Switzerland's reserves are backed by gold. As gold prices goes up, the pair moves down (CHF is bought).
Gold	USD/CAD	Canada is the 5th largest producer of gold in the world. As gold price goes up, the pair tends to move down (CAD is bought).
Oil	USD/CAD	Canada is one of the top oil producers in the world. It exports around 2 million barrels of oil a day to the U.S. As oil prices goes up, the pair moves down.

Gold	EUR/USD	Since both gold and euro are considered "anti-dollars," if the price of gold goes up, EUR/USD may go up as well.
Bond yields	Local Currency	An economy that offer higher returns on its bonds attract more investments. This makes its local currency more attractive than that of another economy offering lower returns on its bonds.
Dow	Nikkei	The performance of the U.S. economy is closely tied with Japan.
Nikkei	USD/JPY	Investors consider the yen as a safe-haven and tend to seek it during periods of economic distress.