Is there any relation between goods and currency markets?

It is worth noting that every currency unit is tied to inventories and has no value without them. Oil being an integral part of economy’s security and economic competitiveness of many countries ensures this value. The U.S. dollar directly depends on oil prices and has great influence on the international currency market.

As a rule, when oil prices rise, the dollar falls and vice versa. The same negative correlation could be seen in a currency of any country that depends on oil import. However, if it is one of major black gold exporters (Canada, for example), then oil price growth will have positive impact on the rate of national currency.

That is why oil price statistics can be a part of Forex fundamental analysis.

Added by Roman Tsepelev,
InstaForex development manager