Commodity Pairs
Categories: Trading, Derivatives, Stocks
Around the globe, there is plenty of gold, oil, and silver to be pulled out of the ground. Countries like China and Russia have no shortage of gold, and Saudi Arabia, Russia, and Iran have plenty of oil to be produced. But on the global currency markets, the currencies of these nations are not very liquid. They’re way more volatile than the U.S. dollar and other currencies from advanced economies. They also aren’t traded with the volumes of the U.S. dollar, nor of several other nations that also have high levels of commodities for production.
In the world of Forex, three different commodity pairs exist between highly traded currencies that correlate with fluctuations in global commodity prices. Those pairs consist of the U.S dollar to the Canadian dollar (USD/CAD), the Australian dollar to the U.S. dollar (AUD/USD), and the New Zealand dollar to the U.S. dollar (NZD/USD).
It’s just a coincidence that all of the countries involved based their financial systems on British Common Law. The three currencies outside of the U.S. have highly liquid currencies that react positively and negatively to the direction of the commodities that they produce.
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Finance: What Are Commodities?74 Views
Finance allah shmoop What are commodities This is a comm
owed And this is my monnet ease And neither of
them have anything to do with commodities though if you
say them fast enough well you'll never mind A commodity
is something that is common like it's everywhere See the
com o there for the big hand Like gold is
a commodity it's everywhere oil is a commodity it's everywhere
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That copy of moby dick is the same copy whether
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killer of those aforementioned book stores So if something is
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you can't buy that on amazon Not yet anyway Or
say you want to be the proud owner of a
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one somewhere but it's going to cost you a whole
lot of kibble Or what if you were looking to
buy a blouse like one that was worn by j
edgar hoover Well those are pretty uncommon and or unique
commodities Well the basic idea is that most commodities can
be sold by lots of people so their profit margins
are generally low They may sell an extreme volume but
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same copy of moby dick don't don't you think the
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Yeah unfortunately then you have to read that book That 00:01:41.357 --> [endTime] book really will be your way