FXS: Commodity Currencies Take a Hit in FX Trading
Forex trading with commodity currenciesRight now, commodity currencies are taking quite a hit in FX trading. In forex trading, commodity currencies are those that rely a great deal on the prices of commodities, since they export them to support their economies.
Because of the global financial crisis and expectations of a recession, demand for commodities -- especially oil and gold -- is dropping. This means that economies that rely on commodities for support are seeing a slowdown.
Right now, the Canadian dollar and the Australian dollar are both dropping (although the Aussie is faring worse than the loonie). The Canadian dollar is especially hard hit right now in currency trading. While it spent a great deal of 2008 up to this point
