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Understanding the CAD/JPY cross and its commodity links
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?
3 comments · 3 points
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.