Cross-Market and Intermarket Strategies involve analysing relationships between different asset classes—such as currencies, commodities, equities, and bonds—to identify high-probability trading opportunities. Rather than focusing solely on one market, these strategies aim to detect capital flow patterns, macro trends, and correlation dynamics that influence price behaviour across the global financial system.

These strategies are commonly used by professional traders and macro hedge funds to gain an edge by understanding how assets interact in real-time.

What Are Cross-Market and Intermarket Strategies?

Cross-market analysis compares price action between different financial instruments in the same asset class (e.g., EUR/USD vs GBP/USD).
Intermarket analysis compares relationships across asset classes (e.g., gold vs USD, or oil vs CAD).

By identifying which markets lead or lag and how they correlate, traders can:

• Anticipate trend shifts early
• Confirm directional bias
• Filter false signals
• Trade in line with institutional capital flow

Core Intermarket Relationships

1. Bonds and Currencies

• Rising bond yields = currency strength (carry trade appeal)
• Falling yields = currency weakness
• US10Y and USD/JPY often move together
• EUR/USD reacts to US-German yield spreads

2. Commodities and Currencies

• Gold and AUD or ZAR (Australia and South Africa = major exporters)
• Oil and CAD or NOK (Canada and Norway = oil exporters)
• Copper and AUD/CLP (Australia and Chile = key producers)

3. Equities and Risk Currencies

• S&P 500 up = bullish for AUD/JPY, NZD/USD
• Equity weakness = JPY and CHF strength (risk-off flows)

4. Dollar Index (DXY) and Global Assets

• Strong USD = pressure on gold, oil, and EMFX
• Weak USD = commodity and risk currency boost

Popular Cross-Market Strategy Examples

1. Risk-On/Risk-Off Alignment
When stocks rise and VIX falls, risk-on currencies like AUD and NZD tend to rally
Trade: Long AUD/JPY or NZD/USD in risk-on environments

2. Yield Divergence in FX
US10Y rising faster than DE10Y? EUR/USD likely to fall
Trade: Short EUR/USD with yield spread as macro confirmation

3. Commodity Trend and FX Pairing
Oil breaks higher and USD/CAD lags? Expect CAD strength to follow
Trade: Short USD/CAD on confirmation

4. Gold and Dollar Divergence
Gold rallies while DXY drops = strong inflation hedge sentiment
Trade: Long XAU/USD or long AUD/USD

How to Execute These Strategies

1. Build a Macro Dashboard
Track live charts of DXY, US10Y, VIX, S&P 500, gold, oil, and major FX pairs
Use heat maps or watchlists to spot leading asset moves

2. Confirm with Correlation Tools
Use correlation matrices or ratio charts to track strong or weakening relationships
Look for shifts in leadership between assets

3. Align Technical Setups with Macro Drivers
Once a leading asset breaks out, wait for lagging assets to confirm
Apply technical tools like trendlines, fib levels, and MACD/RSI to refine entries

4. Time Entry Around Macro Events
Watch for data like CPI, NFP, FOMC, ECB meetings—these drive multiple asset classes at once
Trade during volatility windows when alignment is strongest

Example Trade Setup

Scenario:
S&P 500 rallies, VIX drops below 15, AUD/JPY breaks resistance
US10Y yield is rising, supporting USD/JPY
Trade: Long AUD/JPY (risk-on) and long USD/JPY (yield-driven)
Stop-loss: Below recent swing lows
Target: Prior highs or Fibonacci extension levels

Best Tools and Indicators

Correlation Matrix
DXY, US10Y, VIX, S&P 500 Charts
Moving averages, MACD, RSI for confirmation
Economic calendar for key cross-asset events
Commodity charts (WTI, Gold, Copper)

Markets and Timeframes

Markets:
Forex: AUD/JPY, EUR/USD, USD/JPY, NZD/USD
Commodities: Oil, Gold, Copper
Equities: S&P 500, DAX, Nikkei 225
Bonds: US10Y, DE10Y, UK10Y
Crypto (optional): BTC/ETH for sentiment confirmation

Timeframes:
Swing: 4H–Daily
Macro bias: Weekly
Intraday alignment: 15M–1H

Common Mistakes to Avoid

Assuming correlations are fixed—verify them regularly
Overtrading based on partial confirmation
Ignoring volatility regimes (e.g., VIX spikes distort signals)
Focusing on one asset class in isolation
Forcing trades when assets are out of sync

Conclusion

Cross-Market and Intermarket Strategies provide a comprehensive view of how money moves across global markets, giving traders a decisive edge. By connecting the dots between currencies, commodities, bonds, and equities, you can trade smarter, manage risk better, and stay aligned with institutional capital flows.

To master cross-asset strategies, global correlation models, and macro-execution timing, enrol in our professional Trading Courses at Traders MBA and elevate your market insight beyond technicals.