User 233462

Can Commodities Decouple from Stocks?

Another issue people should consider is the exchange rates if they live outside the US. A profitable trade in the DBC recently turned out to be a loser once the exchange back to Aussie dollars occurred.

For example if one bought 50 DBC at 19.00 on the 6th March and sold them on the 7th May for 21.65, that would have been a 2.65 profit per share (before commissions). But if the exchange from AUD to USD on 6th March and then USD to AUD on the 7th May, would have resulted in a $1.22 loss per trade in Australian dollars.

I want to know how those who live outside the US deal with this, because if commodities are rising, for the most part (and I know not all the time), the USD is falling, which means other currencies are rising in relation to the USD and thus commodities