How you can profit from the powerful downward trend in commodity currencies
Commodity currencies are the currencies of countries which have a heavy reliance on commodities. This could be raw materials or natural resources they export.
The South African rand is a commodity currency, with the SA economy relying heavily on the export of its mined resources.
Commodity currencies have been under immense pressure.
So what are the world's major commodity currencies? And are there any trading opportunities with these currencies?
Let's take a closer look…
The world’s major commodity currencies
The major commodity currencies
The Canadian dollar, heavily reliant on oil;
The Norwegian kroon, also heavily reliant on oil;
The Australian dollar, heavily reliant on iron ore; and
The New Zealand dollar, heavily reliant on dairy produce.
To give you an idea of the powerful downward trend in these currencies is, consider their losses against the US dollar over the past year, Frank Hemsley in Profit Watch
The Canadian dollar is down 17%;
The Australian dollar is down 24%; and
The New Zealand dollar is down 23%.
It’s clear to see the relationship between the price of commodities and the depreciation in these currencies.
Make explosive Forex profits with this tiny book!
Find out more here!
It takes a match to start a forest fire.
It takes a little seed to create an entire human being.
And it takes this tiny book to make you a Forex income to last a life time!
For instance, the Canadian dollar has suffered since the oil price plunged. The Australian dollar is under pressure as China’s consumption of iron ore and other commodities falls. And the New Zealand dollar is under pressure as its dairy exports ebb.
The result is these commodity currencies are in powerful downtrends against the dollar.
An opportunity to play the commodity currencies against the dollar
If you haven’t already taken advantage of these sustained downward trends, they’re worth looking at.
While no-one knows when commodity prices will start to recover, with the fundamentals currently stacked up against these currencies, there’s a good chance these trends will continue.
If you want to short one of the commodity currencies against the dollar, ensure you find the right entry points and manage your risk.
Their demise could mean ample profits for you.
So there you have it. How you can profit from the powerful downward trend in commodity currencies.
*********** New release ************
If you missed the FIRST FSPInvest Forex 101 Workshop on the 15th of August, DON'T miss this!
It's not too late to get every tip, every secret, every idea Master Trader, Timon Rossolimos, shared on the day
Click here and discover how YOU can set up a - very healthy - side income from trading Forex at home in your pyjamas today