FOREX THEORY
The CAD/JPY
Over recent years, this currency cross has become very
popular, becoming highly correlated with the price of oil.
Canada is second largest owner of oil reserves and has benefited
with the rise of oil prices.
On the other hand, Japan is heavily reliant on the importing
of oil. In fact, over 99% of Japan’s crude oil is imported as it has almost no
native oil reserves.
These two factors have caused an 87% positive correlation
between the price of oil and CAD/JPY.
0 comments