What happened to CAD / Crude Correlation?

Discussion in 'Forex' started by The Kin2, Nov 21, 2007.

  1. The correlation between CAD and Crude was 90% earlier this year. Somewhere along the way the CAD went astray. Now the correlation is close to zero or possibly even negative.

    What happened?
  2. I don't know but I'm wondering, too....
  3. BJL


    spurious correlation...
  4. surely the risk of rate cut in CAD has hit the Loon.
  5. 1# lower rates expected.

    2# Canadians buying USD like there's no tomorrow for shopping and florida expenses.(hey 30 yrs we've been waiting so there some pent up demand:D )

    3# have you seen the yen?
  6. No clue what happened, I speculate they will again be in correlation around springtime.
  7. Market is pricing in a 70% probability that Canada central bank going to cut interest rates.
  8. Lets not forget the correlation with gold which has dumped.
  9. Haha. :D :p
  10. So, Market is pricing in a 140% probability that the Fed is going to cut interest rates a quarter in December.
    #10     Nov 24, 2007