Forex Intermarket Analysis Overview
How bonds, commodities, and equities relate to forex. Use intermarket analysis to confirm trends and spot reversals.
Last reviewed: 2026-03-06
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Overview
Intermarket analysis studies how different asset classes—forex, bonds, commodities, and equities—influence each other. Forex does not trade in isolation. Bond yields drive interest rate expectations. Gold often moves inverse to the dollar. Equities signal risk appetite. Understanding these links helps confirm trends and avoid fighting the market.
Key Relationships
Key links: 1) Forex–bonds—rising Treasury yields typically strengthen USD; falling yields weaken it. 2) Forex–commodities—gold is inversely correlated with USD; oil affects CAD and commodity currencies. 3) Forex–equities—risk-on (stocks up) favors AUD, NZD; risk-off (stocks down) favors JPY, CHF.
Why It Matters
Intermarket analysis provides context. If DXY is rising and gold is falling, USD strength is confirmed. If stocks are selling off and JPY is strengthening, risk-off is in play. Use it to avoid trading against the broader picture.
How To Use
Watch the dollar index (DXY) for USD bias. Monitor bond yields (10Y Treasury) for rate expectations. Track gold for dollar sentiment. Use equity indices (S&P 500) for risk-on/risk-off. When multiple assets align, confidence in a trade increases.
Knowledge check
1 of 3How do bonds typically affect forex?
FAQ
Common questions about this topic.
How do bonds affect forex?
Rising bond yields attract capital and typically strengthen the currency. Falling yields weaken it. Treasury yields drive USD expectations.
What is risk-on vs risk-off?
Risk-on: investors favor higher-yield assets (AUD, CAD, stocks). Risk-off: flight to safety (JPY, CHF, bonds). Equities often lead the shift.
Why does gold move inverse to the dollar?
Gold is priced in USD. When the dollar weakens, gold often rises (and vice versa). Both are used as stores of value.
Why use intermarket analysis?
To confirm trends and avoid fighting the market. When bonds, commodities, and equities align with your forex view, conviction increases.
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Disclaimer and sources
Educational content only. Not financial advice.
Important disclaimer
Forex trading involves substantial risk of loss. This content is for educational purposes only and is not financial advice.