tailieunhanh - Forex Trading Using Intermarket Analysis_5

Tham khảo tài liệu 'forex trading using intermarket analysis_5', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | trade secrets Figure . GOLD AND THE EURO A STRONG CORRELATION. WHEN THE VALUE OF THE . DOLLAR RISES OR SINKS THE EURO OFTEN DOES THE OPPOSITE MAKING IT A GOOD MATCH WITH GOLD PRICES IF YOU ARE LOOKING FOR TWO MARKETS MOVING IN THE SAME DIRECTION. Source Vantagepoint Intermarket Analysis Software Thus gold prices are an important component in performing intermarket analysis of the forex market. If you see a trend or price signal on a gold chart it may be a good clue for taking a position in the forex market where a price move may not have occurred yet or a forex move may tip off a gold move. One of the factors cited for the rise in oil prices is the weakness of the dollar as foreign oil producers viewed increases in oil prices as a way to maintain their purchasing power in . dollar terms Figure . One way to counter the impact of higher oil prices is a weaker dollar in what could become a vicious inflationary cycle. Oil is a key commodity driving global economic growth and oil prices and forex have a key relationship in the global economy. For example when oil becomes expensive it hurts the economy of Japan which has 5 6 forex trading using intermarket analysis to rely on imports for most of its energy needs. That weakens the yen. High oil prices benefit the economy of a country such as the United Kingdom which produces oil which strengthens the value of the British pound. Because of the standing of oil in world business and commerce anything that affects its supply or distribution is likely to produce a response in the forex market. This is why terrorist attacks or natural disasters such as hurricane Katrina which threaten the normal flow of oil often cause an immediate response in the forex market. A sudden shift from the dollar to the euro as the designated currency in crude oil contracts as Mideast oil producers have mentioned from time to time could also cause an immediate decline in the value of the . dollar. Figure . 1995