What are Commodities in Forex Trading?
Commodity
Forex Trading Glossary
Quick Answer: Commodities are raw materials like gold, oil, and agricultural products. They significantly influence commodity currencies like CAD, AUD, and NZD.
What is a Commodity?
A commodity is a basic good that can be used interchangeably with other goods of the same type, such as crude oil, gold, or wheat. Commodity prices often influence commodity-linked currencies like AUD, CAD, and NZD.
Commodity Types
- Energy: Crude oil, natural gas.
- Metals: Gold, silver, copper.
- Agriculture: Corn, soybeans, coffee.
- Soft commodities: Sugar, cocoa, cotton.
Supply shocks, geopolitical events, and global demand cycles create volatility that feeds directly into commodity currencies.
Related Terms
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