Keeping an eye on other financial markets

Forex markets function alongside other major financial mar-
kets, such as stocks, bonds, and commodities (e.g. gold, oil,
etc.). Important fundamental and psychological relationships
(discussed more in Chapter 1) exist between other markets
and currencies, especially the U.S. dollar, so look to develop-
ments in other financial markets to see whether they confirm
or contradict price moves in the dollar pairs.