U.S. Dollar versus South African Rand â€“ Despite South Africa being a resource-rich country which exports gold, diamonds and coal to the rest of the world, its wealth is not reflected in the population's standard of living, or the strength of its currency. Aside from its natural resources it has an underdeveloped economy and an undervalued currency. The Dollar/Rand pair has a reputation for volatility, with great swings in price movement within short periods of time to be expected.
USD/CAD Great British Pound versus Canadian Dollar. The UK is the second biggest exporter of services in the world and the eighth largest exporter of good whereas Canada, with its rich natural resources make for two very economic scenarios. The GBP/CAD is a popular currency pair that traders often use as an alternative hedging strategy to the USD/CAD.
Gold is the world's oldest traded commodity and is regarded a safe-haven store of wealth. Historically it has a negative correlation with the US dollar, although over the past few years this relationship has weakened. Gold exhibits a positive correlation with the Australian dollar and the Swiss Franc.
CoffeeBrazil, Vietnam, Indonesia and Colombia account for the overwhelming majority of the worldâ€™s coffee supply. Prices can be volatile and are affected by political turmoil in the countries that produce it, weather, yield speculation, and also the price of oil, as this impacts transportation costs.
Australian Dollar versus Canadian Dollar. Both countries are large suppliers of commodities so the value of this currency pair is affected if commodity prices rise or fall. Both currencies tend to go in the opposite direction to that of other countries where the economies in general are adversely affected if the price of commodities go up.
Silver is normally extracted from copper, gold and zinc ore, rather than mined in its own right. As a result the price of silver is largely determined by the demand for these other metals. Silver also has a traditionally positive correlation with gold, making the precious metal another affordable store of wealth in times of economic uncertainty.