Summary of Commodity Currency

We have just learned about relationships between commodities and commodity currencies. There are a few things to remember before you start applying the ideas learn here today.

Short term moves in commodities usually do not directly affect a commodity currency immediately. Analyzing commodities for use with currencies is probably best suited for longer term outlooks, trading, and investing.

Keep in mind that even though we see strong correlations between the commodity currencies and commodities, exports are only a portion of a country's economy. Always take a look a country's overall economy, interest rates, and political situation as well.

Combining all of these aspects and adding commodity movements in the mix can present a clearer picture and possibly better trading ideas in these currencies.

So, for those of you into Oil, Gold, and commodities in general, check out the "ComDolls." With the leverage and liquidity advantages available in spot Forex trading, currencies can be an awesome alternative to trading straight forward commodities or for hedging your commodity investments! Don't be scurrrrreedd...Check'em out!

Additionally, check out our Commodity Currencies Blog: Playing with ComDolls.

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