CANADIAN DOLLAR - USD / CAD
The Canadian economy is largely dependent on oil exports. Canada is one of the 10 largest oil exporters in the world and the major oil supplier to the U.S. Japan also is a major customer of Canada's oil exports. After Saudi Arabia, Canada has the largest oil reserves in the world.
Due to the large dependence of the Canadian economy of the oil exports, has the Canadian dollar nickname 'loonie'-a strong correlation with the development of the oil price. Foreign Exchange Traders who wish to speculate on the development of oil prices make often use of this strong correlation by occurring in the USD / CAD.
On the Foreign Exchange chart below clearly shows how strong the relationship between oil prices and the rate of the USD / CAD. The correlation between oil prices and the rate of the USD / CAD over the past years was therefore about 80%.
The oil price is seen as the most important leading indicator for the price of currency pair USD / CAD. This means that the oil price is a prediction for the rate of the USD / CAD on the forex.
Another currency pair that a strong correlation with the oil price is the CAD / JPY, or in other words the Canadian Dollar vs. the Japanese Yen. Japan is even more dependent on oil imports than the U.S., because almost all its oil is imported. On the following Foreign Exchange chart of the CAD / JPY is clearly seen that there is a strong correlation between oil prices and the CAD / JPY. Interestingly, oil is often a leading indicator for the rate of the CAD / JPY, what the price of oil is therefore a predictor of the rate of the currency pair CAD / JPY.
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The Canadian economy is largely dependent on oil exports. Canada is one of the 10 largest oil exporters in the world and the major oil supplier to the U.S. Japan also is a major customer of Canada's oil exports. After Saudi Arabia, Canada has the largest oil reserves in the world.
Due to the large dependence of the Canadian economy of the oil exports, has the Canadian dollar nickname 'loonie'-a strong correlation with the development of the oil price. Foreign Exchange Traders who wish to speculate on the development of oil prices make often use of this strong correlation by occurring in the USD / CAD.
On the Foreign Exchange chart below clearly shows how strong the relationship between oil prices and the rate of the USD / CAD. The correlation between oil prices and the rate of the USD / CAD over the past years was therefore about 80%.
The oil price is seen as the most important leading indicator for the price of currency pair USD / CAD. This means that the oil price is a prediction for the rate of the USD / CAD on the forex.
Another currency pair that a strong correlation with the oil price is the CAD / JPY, or in other words the Canadian Dollar vs. the Japanese Yen. Japan is even more dependent on oil imports than the U.S., because almost all its oil is imported. On the following Foreign Exchange chart of the CAD / JPY is clearly seen that there is a strong correlation between oil prices and the CAD / JPY. Interestingly, oil is often a leading indicator for the rate of the CAD / JPY, what the price of oil is therefore a predictor of the rate of the currency pair CAD / JPY.
related posts
- Fx Fish 2Ma
- Trend Alexcud
- Slow Stochastic For Mt4
- Volatility Breakout Systems
- 123 Pattern Forex
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