Year 3 · Applied Finance · Macro Trading Frameworks
Macro Trading Frameworks
Build professional macro views by linking growth, inflation, policy, liquidity and positioning to rates, FX, equities, commodities and cross-asset trade construction.
LEARNING OBJECTIVES
What you should be able to explain after this lesson
01
Translate macroeconomic data into market-relevant narratives.
02
Separate growth, inflation, policy and liquidity impulses.
03
Understand how macro surprises transmit into rates, FX, equities and commodities.
04
Build scenario trees around central-bank reactions and economic regimes.
05
Use relative-value and cross-asset trades to isolate macro views.
06
Incorporate positioning, carry, valuation and catalysts into trade selection.
07
Define entry, stop, target and invalidation logic before trade execution.
CONCEPT MAPFrom macro data to trade expression
Start with growth and inflation before choosing the asset class
CORE FACTS · SAME IN EVERY MODE
Growth and inflation are the two most useful first-order axes for macro regime analysis.
Markets respond to changes in the direction of growth and inflation, not only to their absolute level.
Liquidity and financial conditions can reinforce or offset the underlying economic regime.
Macro regimes should be treated probabilistically rather than as permanent labels.
BeginnerTeaching style changes, knowledge does not.
A simple macro map asks two questions: is growth accelerating or slowing, and is inflation accelerating or slowing? Different combinations tend to create different market environments.
COMPARISON
Simplified regime map
| Growth | Inflation | Typical debate |
|---|---|---|
| Rising | Falling | Soft landing / disinflationary growth |
| Rising | Rising | Reflation / overheating |
| Falling | Falling | Disinflationary slowdown |
| Falling | Rising | Stagflation risk |
PROFESSIONAL VOCABULARYMacro regime / régime macro Financial conditions / financial conditions
Recurring combination of growth, inflation, liquidity and policy conditions.
Combined state of interest rates, credit, equity prices, FX and financing availability.