Predicting the next move in the markets is the key to making money on foreign exchange transactions (Trading), but putting this simple concept in action is much harder than it sounds. Currency traders (Traders) professionals have long known that trading currencies requires going beyond the world of the international market them (FX). The fact is that currencies move due to many factors: supply and demand, policy, interest rates, economic growth, among others. Specifically speaking, since economic growth and exports are directly related to the domestic industry of a country, it is natural that some currencies are highly correlated with commodity prices (Commodities). The three currencies that have the closest relations with commodities are the Australian dollar, Canadian dollar and the New Zealand dollar. Other currencies

are also impacted by commodity prices but have a weaker correlation with these , are the Swiss franc and Japanese yen. Knowing which currency is correlated with what commodity can help operators to understand and predict certain market movements. Correlated currencies here covers with gold and oil, and show you how you can use this information in their foreign exchange transactions. The oil and Canadian dollar. In recent years, the commodity price has fluctuated significantly. For example, oil rose from $ 60 a barrel in 2006 to a peak of $ 147.27 a barrel in 2008, before collapsing again below $ 40 a barrel in the first quarter of 2009. A similar volatility seen in gold prices, which reached a maximum of $ 1,033 an ounce in March 2008, before falling below $ 700 an ounce in June that year. Since many countries are in recession, the trend of commodity prices can mean the difference between an even deeper drop and a quick recovery. Knowing currencies are affected by what commodities will help you make more educated decisions regarding investment in foreign currency.