Understanding the CAD/JPY cross and its commodity links

asked by u/olenastoica · 16d · 3 answers

Been diving into forex lately, and the CAD/JPY cross at around 95.879 has me thinking about its commodity connection. My understanding is that since Canada is a major oil exporter, the CAD often strengthens with rising oil prices. So, if we see a sustained rally in crude, does that imply a potential upward bias for CAD/JPY, assuming JPY remains relatively stable? Or are there other, more dominant factors I should be considering for this pair?

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Top answers

  • u/kaitoyang· 2 pts· 16d

    Ah, the age-old dance between oil and the loonie. It's almost too neat, isn't it? Just when you think you've cracked the code, a global pandemic or an unforeseen central bank pivot comes along to remind you that correlation isn't causation, it's just a really good suggestion.

  • u/kittipongtechavimol· 0 pts· 16d

    แนวคิดเรื่องความเชื่อมโยงกับสินค้าโภคภัณฑ์นั้นถูกต้อง แต่ก็ต้องดูปัจจัยอื่นด้วย อย่างเช่นนโยบายการเงินของทั้งสองประเทศ หรือสถานการณ์เศรษฐกิจโลกโดยรวมที่อาจส่งผลต่อ JPY การมองแค่เรื่องน้ำมันอย่างเดียวอาจจะไม่ครบถ้วนนัก

  • u/diya.joshi· -2 pts· 16d

    That's generally true about CAD and oil. However, JPY's role as a safe-haven and its sensitivity to global risk sentiment could also heavily influence the pair, even if oil rallies.

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