I want to talk to you about comdolls, commodity dollars or in other words commodity currencies. There are a lot of forex currencies out there but the commodity currencies are special because they are countries that export a lot of raw materials like oil, silver, gold, minerals, etc. There are many countries that fall under that category, but the most popular are the Australian dollar, Canadian dollar and New Zealand dollar.

It is important to understand “comdolls” because these countries move such a huge amount of oil or precious metals that it can have a huge effect on the value of their dollar based on the value of the commodities.

As you can tell I have been obsessed with the Canadian dollar and it is precisely because Canada is an oil country. You may not be aware of this, but Canada has the second largest oil reserves in the world, second only to Saudi Arabia. This declaration actually happened a few years ago after the oil sands were proven to be obtainable oil source. Canada is also the largest importer of oil into the United States.

What would that tell us about rising oil prices? Obviously a rising oil price would be good for the Canadian dollar and since the US is so dependent on oil, it hurts the US dollar. If oil goes down, it hurts the Canadian dollar and helps the US dollar.

This makes it pretty obvious what you can do to profit from this. Obviously anytime there is an expected move in oil, you should be able to profit from it. War brings oil up and you should generally know which direction. You should also know that oil is expected to continue in an upwards direction, so you get the idea.