3:34 AM
Forex Bond
I'm assuming that if you read this, then you already have some basic knowledge of foreign exchange (Forex) market, so I'm going to wind through the basics and go right to the main theme of inter-market analysis.
If you have a financial market junkie like me, is the theme of inter-market analysis is a fascinating, because it can be used to make money with forex trading (the main theme of this article) as simple as possible, be applied to raw materials. AsYou can guess, the term "inter-market" in this context simply means looking beyond normal economic data in order to reach a conclusion about where the price is in charge of a particular currency pair. The opposite of intermarket analysis is clearly fundamental analysis, usually focusing on key economic data, such as employment and labor market interest rates.
Currency Market
Some of the most important inter-market relationships have to do with gold, oil, and the yield to 10 years in the United States.The reason why 10-year yield is important because this value can be related to an index value of the dollar or a basket of goods that can show the overall strength of the U.S. dollar can.
When it comes to gold and oil (which are probably two of the most important products in the world today) comes, the prices for these effects, most of the raw materials on the currencies of countries that produce these goods. There are two reports, when it comes to gold and oil: Canada is alargest oil producer, a way that the Canadian dollar (CAD) will be affected by changes in oil prices, and Australia produces a lot of gold, and there are many companies in Australia, with products such as gold, rare coins, the Australian dollar (AUD) will be affected by changes in the price of gold.
These are some of the lowest instances of inter-market relationships in the global economy, but keep in mind that these relations do not * * only for the currenciesmentioned. This means that changes in the price of gold not only on the price of the Australian dollar and let the value of each coin unchanged, changes in the value of these important assets like gold and oil will affect every coin has done just that has a greater share of the Australian economy of business interests in gold, so if gold is more expensive than doing business is more difficult.
Even though oil and gold each have a "flagship" of the currency, thethey concern the most part, fluctuations in the price of each of them in any currency and in a somewhat 'predictable. When it comes to gold, is a rule of thumb, remove the value of the currency of all nations, if gold becomes more expensive, because it suggests that more people buy precious metals because they can not have confidence in body control main the world.
The way oil prices are affecting the currency is very interesting becauseAt this point in history (but hopefully not for long), almost all major economies depend on oil for transportation and heating. The way to influence changes in oil prices, the currency of a country depends on whether the country has left an importer or exporter of oil. As an example, Canada has traditionally been an exporter of oil, while the U.S. has been an importer. So when oil becomes more expensive, this can damage the U.S. economy and pro-Oil exporter such as Canada.
As forex traders, or currency, it is important to understand these relationships, so do not even have the trading signals from a single source. It 'also good to know, how they affect major currencies are commodity prices, because you can also use this knowledge to make money in global stock markets, investing in oil-producing companies such as Canadian and an Australian company specializing in gold coins.
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