New Opportunities in Commodity Currencies
Commodity currencies normally receive significantly less attention than the U.S. dollar, euro, British pound and Japanese yen but that doesn't make them any less interesting. In fact, plenty of opportunities can be found on a regular basis in commodity currencies -- especially these days when their central banks have made their stance on monetary policy abundantly clear, which is a breath of fresh air compared to the Federal Reserve, European Central Bank (ECB) and Bank of England (BoE) who keep the market guessing. The term commodity currencies refers to the currencies of countries that produce and export significant amounts of raw materials. The most actively tracked commodity currencies are the Canadian (CAD), Australian (AUD) and New Zealand dollars (NZD).
I am particularly interested in the CAD and AUD because the Bank of Canada and the Reserve Bank of Australia share a stance that is significantly less dovish than other central banks. More specifically, this past week, the Bank of Canada held onto its view that withdrawing monetary stimulus may be necessary. Translation: The Bank of Canada is talking about raising interest rates!...301 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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