Disliked{quote} Hi Davit, Personally ,I don't like to attach crude oil with FX market. For example reasons why it is not indicating anything about Canada , crude oil only makes 3% of Canada's GDP(interview), that's why crude price shouldn't effect much the CAD strength.On other hand, all the crude market is mostly traded in USD, so rising oil prices should strengthen USD. But by looking at turnover, crude oil turnover is about...Ignored
Yes crude price directly effects CAD and that's why its called commodity pair.Last year high 14683 caused by severe drop of crude at 26.55
It does not matter what % GDP crude is in Canadian economy what matters that market correlates it with oil.This has been my experience of literately thousands of trades I made on CAD over the years.
worth reading and please see the chart as well oil and cad
http://www.investopedia.com/articles...dollar-cad.asp
The high positive correlation between the Canadian/US dollar exchange rate and oil prices is due, in large part, to the large portion of the nations total foreign exchange earnings that is garnered through crude oil sales. Crude oil is the largest single contributor of foreign exchange to Canada
In trading, you have to be defensive and aggressive at the same time
6