Oil Prices – Forex Trading Strategy

How the Oil Prices affect the Forex market?

Hey guys I am back with another video answering your questions. First of all, keep the questions coming on the posts, the blog the socials because I use them to make these videos with.

The question I will be answering today is how the oil prices affect the Forex market? The answer is very simple. The oil prices are obviously important to certain economies. For example Canada is a major oil producer. So when oil prices go up or down the Canadian Dollar follows.

The oil prices recently (in the 2014 and early 2015) fell quite hard. Thus, obviously, revenues generated by oil production from Canada were much lower. That affected Canadian GDP. Traders, of course, interpreted that as bad news for the Canadian economy. So the value of the Canadian dollar went down.

So, to put it simple, currencies that are commodity dependent are directly linked with how high or lower oil prices go. The reason for that is the effect the oil prices have on the overall economy of that country.

That is how the oil prices affect the Forex markets.

Hope that helps and hopefully you can use that information to make some pips next time you see some big moves on the oil markets.

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Source:: Oil Prices – Forex Trading Strategy

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Jarratt Davis
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Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"]www.facebook.com/JarrattDavisForex/[/social] [social type="twitter"]https://twitter.com/jarrattdavis[/social] [social type="google-plus"]https://plus.google.com/+JarrattdavisForexTrader/[/social] [social type="youtube"]https://www.youtube.com/user/JarrattDavisForex[/social]

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