{"id":6354,"date":"2020-12-04T17:08:23","date_gmt":"2020-12-04T14:08:23","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=6354"},"modified":"2026-05-26T10:57:25","modified_gmt":"2026-05-26T07:57:25","slug":"how-does-crude-oil-price-influence-usd-cad","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2020\/12\/04\/how-does-crude-oil-price-influence-usd-cad\/","title":{"rendered":"How Does Crude Oil Price Influence USD\/CAD?"},"content":{"rendered":"\n

Oil has become an intrinsic part of our lives, and humanity depends fully on it: oil is not just a source of energy but also the material from which many everyday things are made.<\/p>\n\n\n\n

It has long been argued that only large corporations can make money on crude oil<\/a> but this is wrong. Most types of oil are available for trading in the stock market, the most popular types are BRENT<\/a> and WTI<\/a>. The USD is the most widespread currency in the world, used for the biggest part of transactions. The majority of wealthy people keep their capital in the USD. The Canadian dollar is less popular over the globe. It is a commodity currency, which means it reacts actively to commodity prices, oil and gold<\/a> in particular.<\/p>\n\n\n\n

Today, we will discuss the interaction and correlation<\/a> of oil prices and the CAD<\/a>. If you look closely at the charts of BRENT<\/a> and USD\/CAD<\/a>, you will notice certain patterns<\/a> in the dynamics of the assets. As long as the Canadian economy depends on oil production and selling, USD\/CAD quotations correlate with oil ones.<\/p>\n\n\n\n

<\/span>What is the correlation?<\/span><\/h2>\n\n\n\n

Correlation is the way assets relate to one another at a certain period<\/strong>. There are three types of correlation:<\/p>\n\n\n\n