Commodity Currencies or Major Currencies are the currencies of countries whose significant exports compromise of natural resources. This includes the currencies from Canada, Australia, New Zealand, Russia, etc.
As such, commodity currencies move according to the global value of various commodity products, as the countries mentioned above, usually depend strongly on exporting raw products to gain income.
The nature of commodity currencies in Forex may help traders estimate a currencies’ value and effectively make forecasts on its market trends based on it.
Major Currency Pairs
In the foreign exchange market, the most popular and highly-traded currency pairs are called significant currency pairs or Majors and take up most of the trading activity every day.
Major Currency pairs are usually pairs of currency that typically include the most popular currencies in the world in either the bid or ask price and can even be on both. Majors are usually determined through its high liquidity in the market.
An example of currencies within major currency pairs are those such as the U.S. Dollar (USD), Canadian Dollar (CAD), Swiss Franc (CHF), British Pound (GBP), Japanese Yen (JPY), Australian Dollar (AUD), and the New Zealand Dollar (NZD).