What is intermarket analysis?
When more than one financial market or asset class – such as currencies, stocks, bonds and commodities – are considered by way of an overview to determine measurable correlations or synchronicities, then this is called an intermarket analysis.
Where have you heard about intermarket analysis?
News outlets and reporters on financial markets have been increasingly conducting and publishing information from intermarket analysis when comparing the price of gold and bonds to cryptocurrencies, such as bitcoin.
What you need to know about intermarket analysis.
Intermarket analysis can be presented many ways, but primarily comes with charts, tables and reports.
Typically, there are four major asset classes (currencies, stocks, bonds and commodities) that are technically examined to determine their relationship to one another. These help provide context, but also give insight into what is happening in the broader financial spectrum.
It's important to relate the assets within the same market that is being considered. For example, when analysing Britain's financial market, you could look at pound sterling, the UK bond price and the FTSE.