In this video, you will learn about the correlation between the Canadian dollar, and the Crude Oil. Canada is a major exporter of Crude Oil. It has increased its capacity in production and is supplying about 6 million barrels per day. It has 173 billion barrels in its oil reserves. However, Canada is not a member of OPEC.
About 99% of its exports goes to US. Hence, Canada's economy is largely dependent on the oil that it exports. So, when the Crude Oil market does well, then the Canadian dollar has to benefit from the rising oil prices. It means that the Canadian dollar will appreciate.
So, when the price of the Crude Oil goes up, then the USD/CAD pair will go down. When the oil market does not do well, then you can buy the USD/CAD pair. There is a positive correlation between oil and the Canadian dollar. So, pay attention to headlines related to oil markets.