The price of the Canadian dollar is often positively correlated with the price of oil. Typically, an increase in the price of oil will see an increase in the value of the Canadian dollar on the forex market. This is often reflected in the movements the USD/CAD pair because oil is traded in the US dollar, which is generally negatively correlated with the price of oil.
This means that when the price of the US dollar increases, the price of oil tends to decrease. It also means that an increase in the price of oil usually causes a decrease in the value of the US dollar. such as in the CAD/JPY pair – when oil is rising, or take a short position on the US dollar – such as in the USD/CAD pair – when the same thing happens.
disclaimer= correlation isn't always perfects .
This means that when the price of the US dollar increases, the price of oil tends to decrease. It also means that an increase in the price of oil usually causes a decrease in the value of the US dollar. such as in the CAD/JPY pair – when oil is rising, or take a short position on the US dollar – such as in the USD/CAD pair – when the same thing happens.
disclaimer= correlation isn't always perfects .
