As head FX strategist at CMC Markets-one of the world's leading forex/commodity brokers-Ashraf Laidi understands the forces shaping today's currency market and their interplay with interest rates, equities, and commodities. And now, with Currency Trading and Intermarket Analysis, he shares his extensive experiences in this field with you. Throughout the book, Laidi outlines the tools needed to understand the macroeconomic and financial nuances of this dynamic field and provides you with insights that are essential to making the most of your time within it. A high-profile currency analyst outlines a profitable way to trade this dynamic market This book skillfully explains how global financial markets interact and provides currency traders with methods to spot changing trends and long-term trading opportunities. Foreword. Preface. Acknowledgments. Chapter 1: Gold and the Dollar. End of Bretton Woods System Marks Gold s Takeoff. Fed Tightening and FX Interventions Rein in Gold Rally. Central Banks Gold Sale Agreements. Gold USD Inverse Relation. Recent Exceptions to the Inverse Rule. Using Gold to Identify Currency Leaders and Laggards. Gold s Secular Performance. Valuing Currencies via Gold. Golden Correlations. Don t Forget Falling Gold Production. Gold and Equities: Hard versus Monetary Assets. Equity to Gold Ratios. The Role of the Speculators. Gold is Part of a Larger Story. Chapter 2: Oil Fundamentals in the Currency Market. From a Gold Standard to an Oil Standard (1970s 1980s). Oil Glut and Price Collapse (1981 1986). The Super Dollar of 1980 1984: World s Third Oil Shock. World Intervenes against Strong Dollar (1985 1987). Iraq s Invasion of Kuwait and the Gulf War (1990 1991). The Asian Crisis and OPEC s Miscalculation (1997 1998). Oil Thrives on World Growth, Dot Com Boom (1999 2000). Iraq War Fuels Oil Rally, Dollar Flounders, China Takes Over (2002 Present). Summary. Chapter 3: When the Dollar Was King (1999 2001). The Major Theories. Annual Performance Analysis of Individual Currencies. Summary. Chapter 4: The Dollar Bear Awakens (2002 2007). 2002: The Beginning of the Dollar Bear Market. 2003: Dollar Extends Damage, Commodity Currencies Soar. 2004: Global Recovery Boosts Currencies against US Dollar. 2005: Commodities Soar alongside Dollar, Carry Trades Emerge. 2006: Dollar Vulnerable as Fed Ends Two Year Tightening. 2007: Record Oil Boosts Loonie, Helpless Fed Hits Greenback. Lessons Learned. Chapter 5: Risk Appetite in the Markets. Carry Trades in Foreign Exchange. Using Risk Appetite to Gauge FX Flows. Tying It All Together: 1999 2007. Chapter 6: Reading the Fed via Yield Curves, Equities and Commodities. Yield Curves and the Economy. Types of Yield Curves. Rationale of Inverted Yield Curve Implications. Effectiveness of Yield Curve Signals Implications. Greenspan s â Conundrumâ Proved Bernanke s Problem. Implications for Growth, Stocks, and Currencies. Tying Interest Rates to the Gold Oil Ratio. Conclusion. Chapter 7: U.S. Imbalances, FX Reserve Diversification and the U.S. Dollar. The U.S. Twin Deficits. U.S. Current Account Deficit: Old Problem, New Challenges. Adding the Budget Balance to the Mix. Financing the Deficits: The Path to Unsustainability? Dissecting U.S. Bound Foreign Capital Flows. U.S. Stocks and Bonds Vie for Foreign Money. Capital Flows Shift Identities. Foreign Direct Investment and M&As. How Long Foreign Capital Be Available on the Cheap? Don t Ignore U.S. Investors Flows Abroad. Currency Reserve Diversification: OPEC and the Middle East. Further Currency Diversification Is Inevitable. The View Ahead. Chapter 8: Commodities Supercycles and Currencies. The Current Commodity Cycle versus Previous Cycles. Dissecting Commodity Classes. Commodities and their Currencies. Developing World to Maintain Ripe Outlook for Food and Grains. Energy Efficiency Not Enough to Halt High Oil. Copper and Gold to Shine on Long Term Fundamentals. Commanding Heights or Common Bubbles? Chapter 9: Selected Topics in Foreign Exchange. Revisiting Yield Curves. Is Dollar Stability a Necessity? How Far Will Commodities Outstrip Equities? U.S. Politics and the U.S. Dollar. Bibliography. About the Author. Index.