Intermarket Analysis Cheat Sheet

That’s a lot of intermarket 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.

And if you’re looking for a more in-depth look at intermarket analysis, check out Intermarket Analysis: Profiting from Global Market Relationships by John J. Murphy (Amazon Affiliate Link) if you want to further your study and add another skill to your trading tool box!

"Intermarket Analysis" Forex Quiz

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  1. Forex and Global Equity Markets
  2. The Relationship Between Stocks and Forex
  3. How the Stock Market Affects the Forex Market
  4. How to Use EUR/JPY as a Leading Indicator for Stocks
  5. Intermarket Analysis Cheat Sheet