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Forex Investing News : The Best Time To Trade USDCAD Is Now
Los Angeles, CA - May 6th, 2008 ---- Nick Chaiyapin, Chief Currency Analyst
| The high time for Forex Trading is now, especially for USDCAD. Oil prices are making a new page of history. It surges to a record $120 per barrel, and it does not look like it will go down anytime soon. |
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How does USDCAD correlate with the price of oil? Canadian dollar has been highly correlated with the price of oil, because Canada is the world’s second largest reserves. Canada is also the number one supplier to the United States. Canada oil companies firmly benefit from greater export revenue when the oil prices go up. Skyrocket price of oil adds positive growth in overall national income. Currency analysts say Canadian dollar is over 80% correlated with the price of crude old. Therefore, many currency analysts predict that an appreciation in oil would equate to an analogous depreciation in USDCAD over 80% of the time.
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