How & Why Oil Impacts The Canadian Dollar 🛢️

How Oil Moves with USD/CAD. http://www.financial-spread-be....tting.com/forex/spre PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Crude Oil and USDCAD, Correlation

You may have heard of commodity currencies; these are currencies where the country is exporting a commodity. Like for instance Australia with gold and Canada with crude oil and that means that country's currency is effected by the price of the commodity.

How Oil Moves with USD/CAD

Canada exports 3 million barrels of oil and other petroleum products to the USA per day. That is going to effect the USD/CAD cross in particular the Canadian Dollar.
If Canada has a fixed costs for producing a barrel of oil; if this cost is $5. If crude oil is trading at $50, they're making $45 per barrel. Now let's say that the next year the price of crude oil doubles to $100. The price of production stays the same but Canada is now making a lot more per barrel of crude oil in profits.
More money flows into Canada's economy and that will increase the value of the Canadian dollar.
Oil has had a negative correlation with USD/CAD over the years 2000 to 2016.

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