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Is the Canadian dollar correlated with the U.S. dollar, that is, if the U.S. dollar rises, the Canadian dollar would rise too? Thank you!?

Updated 5 days ago:

Sandy, thanks for your rapid reply. As I'm not an American, may I know why Biden's action of stopping the Keystone Pipeline would affect the correlation between the U.S. and the Canadian dollar ? Many thanks !! 🙏🙏

2 Answers

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  • Oiy
    Lv 7
    4 days ago
    Favorite Answer

    Most of the world currencies are correlated by market mechanism or manipulation. The monetary policy of the most important countries like the US, Canada, the Eurozone and China are correlated to the world money market. This is because of the reserve currency and capital flow. The gold price and the crude price are inversely moving against the USD, because the trade will move to gold if the dollar depreciated. The USD and the CAD are positively correlated. We are neighbors. And we do things mostly together.

  • Sandy
    Lv 7
    5 days ago

    it would have if Biden hadn't stopped the Keystone Pipeline. 

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