![\"Oil\"](\"https:\/\/farm5.staticflickr.com\/4084\/5068440047_c83ec4e30e.jpg\")
<\/p>\nAll global markets are related somehow, but which ones should you watch to become a better Forex trader?\u00a0 The obvious one is interest rates.\u00a0 When interest rates are higher in a country, it is good for that currency because money flows into that country to get paid the higher rate.\u00a0 But interest rates do not change that often and are easy to track.<\/p>\n
The question then becomes, what are the important markets to watch that can affect the daily fluctuations in currency pairs?\u00a0 In this post, I will give you three markets to watch and which currency pairs they influence.<\/p>\n
Before we get into it, remember that trading is not an exact science.\u00a0 You need to observe these statements for yourself in real market conditions and draw your own conclusions.\u00a0 They are generally what influences markets, but there are many different things that factor into the price of a currency pair.\u00a0 It is up to you to determine when a price move is being driven by one of these other market and when it is not.<\/p>\n
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Crude powers the world and it is no wonder that it's price affects the world's currencies.\u00a0 Pay particular attention to countries that rely on heavily on oil imports and exports.<\/p>\n
The currency pair that is most sensitive to fluctuations in oil is the CAD\/JPY.\u00a0 The reason is that Canada's economy relies heavily on oil exports and Japan imports almost all of it's oil.<\/p>\n
When oil gets expensive, it is good for the Canadian economy and bad for the Japanese economy and the pair goes up.\u00a0 When the price of oil falls, it has the opposite effect on the pair.\u00a0 When these individual currencies are a part of other currency pairs, the price of oil does have an effect on the pair, but not as much as with the CAD\/JPY.<\/p>\n
![\"Gold](\"https:\/\/www.tradingheroes.com\/wp-content\/uploads\/gold-bars.jpg\")
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The yellow stuff is considered a safe haven when things start to get crazy in the financial markets.\u00a0 But it's price also has an effect on countries that export and import a lot of gold.\u00a0 Of particular note is Australia, which is one of the largest gold exporting countries in the world.<\/p>\n
The prevailing trend of gold price should always be taken into account whenever trading a pair that involves the Australian dollar.\u00a0 Remember that when the AUD is listed first in the currency pair, such as in the AUD\/JPY, an upward move in gold, will have add an upward bias on the currency pair.\u00a0 If the AUD is the second pair, like in the EUR\/AUD, an upward trend in gold will give the pair a downward bias.<\/p>\n
Watching US stocks and also give you some clues as to the direction of the market.\u00a0 The general concept is that when US stocks do well, that attracts interest from foreign investors, who convert their currencies to US Dollars to purchase US stocks, which is good for the US Dollar.\u00a0 Conversely, when US stocks are not doing well, foreign investors sell their stocks, putting downward pressure on the US Dollar.<\/p>\n
So keep this in mind when trading USD pairs.\u00a0 The correlation may not be high, but watch for long trends in the US stock market.\u00a0 The stronger the trend, the more likely foreign money will start to move in or out of US Dollars.<\/p>\n
There may be similar correlations with other stock markets, such as in the UK, so do some research and put in some screen time watching these markets and how the move, relative to each other.\u00a0 Chris Lori also mentions<\/a> is that watching Dow futures before the US market open can give you a clue as to where AUDJPY is going to go for the day.<\/p>\n There are several ways that you can keep track of these markets.\u00a0 One way is to continually check a site like Bloomberg or Reuters to see what is going on.\u00a0 It is not hard to do, but I forget many times.<\/p>\n Another way to do it is to add the charts to TradeInterceptor<\/a> on your phone.\u00a0\u00a0 Here is what TI looks like on my phone and the non-forex markets that I am tracking.\u00a0 Again, I usually check it a couple of times a day, but sometimes I do forget.<\/p>\n Are there any other intermarket correlations that you have found particularly useful?\u00a0 Let us know in the comments below!<\/strong> <\/em><\/p>\n <\/p>\n <\/p>\n Disclaimer: I do get a commission if your purchase or sign up for services mentioned in this post.\u00a0 However, I only recommend them because I find them useful and the proceeds go towards supporting my work and a portion goes towards my charity partner.<\/em><\/p>\n ###<\/p>\n <\/p>\n Photo Credits: Oil<\/a>, Gold<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Wondering which non-Forex markets you should be watching to get clues about currency price moves? These 3 will get you started.<\/p>\n","protected":false},"author":2022,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204239],"tags":[201649],"class_list":["post-7371","post","type-post","status-publish","format-standard","hentry","category-trading-education","tag-fundamental-analysis","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"\nHow To Keep Tabs On These Markets<\/h2>\n
![\"Trade](\"https:\/\/farm8.staticflickr.com\/7451\/9893191724_303e8ede02.jpg\")
\nSo it is nice to have a backup.\u00a0 My solution is to get free email updates from INO<\/a>.\u00a0 It makes it easy to scan what is going on in the markets during the day.\u00a0 If you want, they have an in-depth analysis of each market in the email, but I usually just read the summary of how the markets did for the day, at the top.\u00a0 Oil is a little further down in the email.
\n![\"INO](\"https:\/\/farm6.staticflickr.com\/5505\/9893431715_4aaf20a778.jpg\")
<\/a>There may be other ways that work better for you, but this is what I have found most convenient<\/a>.\u00a0 Again, it cannot be stressed enough, but these are just clues as to what the currency markets might do next.\u00a0 You have to determine for yourself if a currency pair is currently being heavily influenced by one of these three factors, or not.\u00a0 I hope that this post helps you put some of the pieces together when it comes to seeing the bigger picture in currency trading.<\/p>\n