♻️Loonie, Crude Oil Short-Term Correlation Oil Breaks Up: Cable FX Macro
- Rosbel Durán
- Mar 6, 2023
- 1 min read
**As seen in Macro Walk report 03/03/23, subscribe at cablefxm.co.uk/reports
Our cross-asset correlation section found in the Macro Walk report shows the differential between the 100-day and 25-day coefficients. The table is set to show when short-term correlations diverge from long-term, of course, we advise discretion as not all cross-asset relationships mean there is a fundamental driver of a currency
In this case, crude oil and the Canadian dollar meet the prerequisite. Our coefficient differential tracker showed a negative reading, this means that the short-term correlation between CAD and crude oil is no longer positive
The divergence is seen as CAD has failed to follow a crude rally that sent oil to gain 7.0% over the last 8 sessions, meanwhile, CAD/USD is down by 0.4% on this same period.
Watch out for events ahead and read our Bank of Canada preview found in the Risk In The Week report at cablefxm.co.uk/reports
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