Commodity Market


Oil restores gains as OPEC+ set for emergency meeting
Oil restores gains as OPEC+ set for emergency meeting
Brent futures erased earlier losses on Friday amid reports that OPEC+ is set to hold an emergency virtual meeting on Monday to stabilise global markets. Most Asian stocks and currenc...
Soy Wave Analysis – 03 April, 2019
Soy Wave Analysis – 03 April, 2019
Soy continues to fall inside the C-wave of the medium-term ABC correction (2), which started earlier from the key resistance level 890.00 intersecting with the 50% Fibonacci correcti...
WTI Wave Analysis – 02 April, 2019
WTI Wave Analysis – 02 April, 2019
WTI recently reversed up from the key support level 20.00 (which stopped the previous sharp impulse wave (i) in March), standing near the lower daily Bollinger Band.
Sugar Wave Analysis – 01 April, 2019
Sugar Wave Analysis – 01 April, 2019
Sugar recently broke through the strong support area lying between the key support level 10.70 (previous multi-month from last September) and the support level 10.50 (which stopped t...
Corn Wave Analysis – 31 March, 2019
Corn Wave Analysis – 31 March, 2019
Corn under bearish pressure after the earlier downward reversal from resistance area lying between the major resistance level 350.00 (former multi-month support from September), 38.2...
Cotton Wave Analysis – 30 March, 2019
Cotton Wave Analysis – 30 March, 2019
Cotton recently broke the support area located between the round support level 50.00 (which stopped the previous short-term impulse wave (i)) and the support trendline of the wide do...
Recession fears to keep Dollar supported, Oil depressed
Recession fears to keep Dollar supported, Oil depressed
The Dollar index (DXY) is halting its slump, after registering losses in six consecutive daily sessions to now test the 98.35 support level. 
Natural Gas Wave Analysis – 27 March, 2019
Natural Gas Wave Analysis – 27 March, 2019
Natural Gas recently reversed down from the resistance area lying between the key resistance level 1.770 (former strong support from February) and the 38.2% Fibonacci retracement of ...
Wheat Wave Analysis – 27 March, 2019
Wheat Wave Analysis – 27 March, 2019
Wheat recently broke above the key resistance level 570.00 (which stopped the (b)-wave of the previous ABC correction 2 from the middle of January).
Soy Wave Analysis – 20 March, 2019
Soy Wave Analysis – 20 March, 2019
Soy recently revered up sharply from the support area lying between the pivotal support level 820.00 (which reversed the price in May of 2019), lower daily Bollinger Band and the sup...

The influence of commodity analysis on Forex trade

How investor can realize a profit on the raw materials market, despite high capital requirements and other difficulties when dealing with commodities? The answer is simple - to make investments via the foreign exchange market. Like other financial markets, the Forex market has a direct communication to other types of investment assets. This communication could be the direct one (when both assets enhance), or reverse (when one assets grows in price, the other falls). Such relationships help investors to obtain admittance to other markets, and are of great help when analyzing trends on the world market.

Types of Basic Commodities

The basic commodities on the raw materials market are the class of assets that includes itself raw materials and resources supplied in an ordinary way and available for an exchange. These examples include:   

  • Metals, such as iron ore, aluminum, silver or gold
  • Foodstuffs, such as wheat, rice, sugar, salt, coffee beans and soya beans
  • Energy commodities, such as oil, coal, natural gas and electricity.

On the actual commodity market the bulk of transactions go to trade futures – the contracts, time of delivery of which occurs in a certain period in the future. The benefit of the raw materials market participants consists of the exchange gain between buying price and futures contract selling. This feature offers promising opportunities for income acquisition, making the commodity market instruments attractive to private traders. Commodity prices on the raw materials market are usually specified in U.S. dollars. If the U.S. dollar is not the currency of your trading account, you should be aware that exchange rates fluctuations will affect your results.

The basic commodities could be traded with many brokers by the instrumentality of contracts for difference (CFD). 

Commodity Market and the Exchange Rates

The economics of many countries are heavily dependent on basic commodities exports, for example, Australia, Brazil and Canada. Value of currency in these countries is often influenced by commodity prices.

For example, Australia is an important producer of gold. If the price of the gold increases, appears the need for more Australian dollars amount in order to purchase it, and thus, the price of the Australian dollar will increase.

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