What Currency Pairs Are Correlated With Oil And Gold!

Gold,oil and forex markets are intimately connected. As a forex trader, keeping an eye on the gold and oil markets can help you forecast price changes. Gold and oil prices are considered to be leading indicators in forex trading. The three markets, gold, oil and forex tend to move based on the same fundamentals. Get this 1 Minute Forex Trading System FREE. This forex trading system is so simple that even a person who has never traded forex can use it to make money. Download these Forex Scalping Cheatsheets plus the 10X Scalping System and the Hot Time Indicator FREE. Learn this Fibonacci Retracement Method FREE that can pull 500+ pips per trade!

When USD rises, gold prices fall and when USD falls, gold prices rise. This is exactly what is happening right now. The currency pairs AUDUSD, NZDUSD and USDCHF tend to mirror gold prices. Now, USDCHF is a popular currency pair among forex traders. CHF is highly correlated with gold prices. This has something to do with the gold reserves held by the Swiss government. In times of financial crisis, investors tend to buy CHF. So, if you want to trade USDCHF, you should watch the gold market too!

CAD is the only currency pair in the commodity currencies that is somewhat correlated with oil prices. Oil drives the global economy. Rising oil prices produce inflation and slows down the global economy. Now, Canada is one of the biggest exporter of oil to US. Canadian economy is heavily dependent on heating oil as the winters are long and people use heating oil extensively during the winters.