What happened to CAD / Crude Correlation?

The Kin2 · Nov 21, 2007

The correlation between CAD and Crude was 90% earlier this year. Somewhere along the way the CAD went astray. Now the correlation is close to zero or possibly even negative.

What happened?

marcomayer · Nov 21, 2007

I don't know but I'm wondering, too....

BJL · Nov 21, 2007

spurious correlation...

JDO_Trader · Nov 22, 2007

surely the risk of rate cut in CAD has hit the Loon.

Cdntrader · Nov 22, 2007

Quote from The Kin2:

The correlation between CAD and Crude was 90% earlier this year. Somewhere along the way the CAD went astray. Now the correlation is close to zero or possibly even negative.

What happened?

1# lower rates expected.

2# Canadians buying USD like there's no tomorrow for shopping and florida expenses.(hey 30 yrs we've been waiting so there some pent up demand

)

3# have you seen the yen?

bathrobe · Nov 22, 2007

Quote from The Kin2:

The correlation between CAD and Crude was 90% earlier this year. Somewhere along the way the CAD went astray. Now the correlation is close to zero or possibly even negative.

What happened?

No clue what happened, I speculate they will again be in correlation around springtime.

arealpissedgoy · Nov 22, 2007

Market is pricing in a 70% probability that Canada central bank going to cut interest rates.

dandxg · Nov 22, 2007

Lets not forget the correlation with gold which has dumped.

The Kin2 · Nov 24, 2007

Quote from dandxg:

Lets not forget the correlation with gold which has dumped.

Haha.

The Kin2 · Nov 24, 2007

Quote from arealpissedgoy:

Market is pricing in a 70% probability that Canada central bank going to cut interest rates.

So, Market is pricing in a 140% probability that the Fed is going to cut interest rates a quarter in December.