Excerpt from: Financial Spread Betting Strategies
|
 |
| May 17, 2007 | | Watching commodity prices can help your spread betting strategy | Commodity currencies are those that rely on commodities, such as metals and oil, for much of their income from exports. Commodity currencies are affected by the price changes in commodities. With gold and other metals down, for example, the Australian dollar, which relies on metals, falters as well. Gold prices also usually move inversely to the U.S. dollar, which means that the dollar is getting stronger right now, which can also affect commodity currencies. Financial spread betting strategy should take this into account when dealing with commodity currencies. WA Business News offers the Australian dollar as an example of commodity currencies:
"A stronger US dollar, weaker metals prices and growing conviction that
the RBA is on hold for the foreseeable future are weighing on the
Australian dollar," ANZ senior international economist Katie Dean said. | | |
|
|
