Relations Oil, Dollar, Gold and Forex

Developments in oil prices after the outbreak of war in Libya is very influential on commodity prices and the index that is currently providing a significant impact on the development of currency in Forex trading. Call it a few commodities such as oil, gold and natural gas create strong influence on the rise and fall of the USD and other currencies. So also with the movement of stock in America pegaruh affiliated with the Dow Jones Index. If the movement in general shares a country has decreased the value of the currency country will be corrected down.

 Oil

Oil is usually obtained in the form of crude oil or also known as a commodity and the major needs of the world until today. Indonesia, including in countries that have oil in the current crisis.Output of crude oil used in common everyday use is diesel fuel, gasoline, pertamax, and others - As much as 84% of other commonly used units counted Barrel is a unit of crude oil into a medium of exchange dollar exchange rate. 

Selection of the dollar as a medium of exchange for oil and gold is denominated in USD is known almost all over the world. Especially for oil, America is a country that exceeds the world's highest oil consumption of China. Barrels are also recognized and used as a tool unit of crude oil because it is officially using the standard ISO 9001:2000.

Categories oils commonly traded in the world:

1. West Texas Intermediate (WTI), which is the highest quality, sweet, golden yellow oil produced in Cushing, Oklahoma (United States).

2. Brent Blend, which consists of 15 kinds of the Brent and Ninian systems tested produced in the waters east of Shetland Basin in the North Sea. Production base is in Sullom Voe, Shetland. Countries in Europe, Africa and the Middle East use this oil as a standard medium of exchange of commodities.

3. Dubai-Oman, supplied to the Middle East and Asia Pacific.

4. Tapestry (manufactured in Malaysia, is supplied to East Asia).

5. Minas (manufactured in Indonesia, is also supplied to East Asia).

6. OPEC Reference Basket, produced in member countries of OPEC.

Recently, the oil back down to the area under $ 120 per barelnya. This is because there are storms that disrupt Edward gas and oil pipelines in the Gulf of Mexico so that the oil sold under the normal price (bargain) to save the existing inventory of the storm.

With these conditions the oil exporting countries like Canada will lower its sales due to lower world oil prices.

With the rise in world crude oil prices then:

1. The USD will weaken. This is because the burden of American country's oil consumption will also increase followed by a negative trade balance.

2. Value of routine pengespor country's currency in world oil such as CAD (Canada) and NOR (Norway) will rise.

3. Value against the USD currency pairs are others such as AUD / USD, EUR / USD, GBP / USD, and NZD / USD followed by a downturn pair USD / CHF, USD / JPY and USD / CAD.

Gold

Gold is used as a standard unit based on the Bretton Woods system. Gold symbol is XAU based on ISO standards. The size of the purity of gold is known as rust. The most pure is 24 carat. Gold prices are high at this time because there is very limited. The first time the U.S. government pegged the price of gold to $ 20.67 per troy ounce ($ 664.56 / kg), in 1934 rose to $ 35 per troy ounce or setar with $ 1,125.27 per kg. In 1961 the United States and Europe makes price manipulation in the market until the price of gold soared at this time. Current gold price is $ 892.4 per onz.

In 2005 the agency the World Gold Council estimates that the world's gold inventory currently reaches 3859 tons. If less the demand for gold which totals 3754 tons will still be remaining at 105 tons.

Gold is the standard value of most currencies like the United States. So we can say gold is a valuable commodity second only to oil. State the most sensitive to fluctuations in gold prices are AUD.

Dow Jones Index

Dow Jones Index is a main index that covers all services including the exchange rate and various other investment products. Better known is the Dow Jones Industrial Average or better known as the Dow Jones Index 130 000 kinds of products that include fixed income and alternative investments, including investment in hedge funds and commodity markets. DJI is also the owner of the Dow Jones Stoxx Index.

one in which there are base index European indexes, Wilshire Associates (Dow Jones Wilshire Global Index), which consists of data the Dow Jones Wilshire 5000 index in which there is in 60 countries and 12,000 securities firm.

The system contained therein is a unified and integrated system that is integrated with one another. The point the Dow Jones Index reflects the 95% capitalization U.S. companies, excluding small and medium companies which shares are slow movement. If the movement is stronger or weaker DJI USD currency movements will also be affected. If all stock prices are incorporated in the DJI rose then the USD also will tend to rise, and vice versa.