Category: 3. Using Equities to Trade FX

Intermarket Analysis Cheat Sheet

Intermarket analysis studies the relationships between asset classes, typically currencies, bonds, commodities, and stocks. It can help traders generate broader trading ideas, reveal potential market turning points, or confirm other analysis methods. The price action of currencies is often driven by their relationship with commodities, bonds, and stock indices. For example,...
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How to Use EUR/JPY as a Leading Indicator for Stocks

As we said earlier, in order for someone to invest in a particular stock market, one would need the local currency in order to purchase stocks. You can imagine what the effect of stock markets like the DAX (that’s the German stock market), have on currencies.In theory, whenever the DAX rises,...
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How the Stock Market Affects the Forex Market

Let’s see how the forex market can affect the stock market, specifically stock indexes. When people talk about the stock market, you generally hear them using a stock market index in reference to the market’s performance. A stock market index is simply a curated list of certain stocks. This...
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The Relationship Between Stocks and Forex

One issue with using global equity markets to make forex trading decisions is figuring out which leads which. It’s like answering that age-old question, “Which came first, the chicken or the egg?” or “Who’s yo daddy?!” Are the equity markets calling the shots? Or is it the forex market that wears...
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Forex and Global Equity Markets

Did you know that equity markets can also be used to help gauge currency movement? In a way, you can use the equity indices as some kind of a forex crystal ball.Based on what you see on the television, what you hear on the radio, and what you read...
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