A connected landscape
Currencies, equities, commodities and indices reflect different parts of the same global economy. A change in one market can influence another through trade, funding costs and investor expectations.
Currencies and international trade
Exchange rates express the value of one currency relative to another. Businesses exchanging goods internationally, changes in interest rates and expectations about economic growth can all influence demand for currencies.
Companies and the wider economy
Equity prices reflect expectations about businesses. Indices group securities to provide a broader reference, but their composition and weighting matter. An index is not a complete measure of a country’s economy.
Resources and supply
Commodity prices can respond to production, transport, weather and demand. Gold, oil and agricultural goods have different drivers; treating them as one uniform market can obscure important differences.
Start with context
Relationships between markets change. Correlation does not guarantee causation, and a relationship observed in the past may not persist. Build understanding before making decisions.