Why Intermarket Correlations Are Critical Within Financial Markets

Financial markets are not separated from each other and do not behave as 'stand alone' markets. In fact, the financial markets are highly interdependent where price movement of one market can quickly impact another market.

Financial markets are not separated from each other and do not behave as 'stand alone' markets. In fact, the financial markets are highly interdependent where price movement of one market can quickly impact another market. For instance, price movement on the EURUSD can impact the GBPUSD and a drop in oil can impact the USDCAD and the Forex market in general. 

 

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