Forex Investment and Currency Trading

October was truly an extraordinary month. Price volatility in USD/CAD reached unprecedented extremes as new all-time wide daily, weekly and monthly ranges were established. But USD/CAD
was not alone, as record moves were also evident in a number other currencies and across asset markets. Crude oil saw the biggest monthly decline on record – from US$100/bl to US$64. The
same holds true for gold and the metal index. It should, therefore, not come as a surprise that commodity-based currencies underperformed as a group: AUD (-16% m-t-d), CAD (-13%), NZD
(-13%) and NOK (-12%). More importantly, with no relief in sight for commodities, none of these currencies are expected to recover significantly from their month-end closes in the near future.