I have noticed that the CAD $ moves in a pretty decent lock step with crude oil. In this article you highlight that to a degree. I’m just wondering what you think is causing the current divergence? Is it the OIS spread?
Yes. Watch 2y and 10y nominal differentials, ois spreads and xccy. Oil is directly connected to the current account side of their country generating national income. The others are connected to the capital account.
Thank you for sharing. Cheers
I have noticed that the CAD $ moves in a pretty decent lock step with crude oil. In this article you highlight that to a degree. I’m just wondering what you think is causing the current divergence? Is it the OIS spread?
Yes. Watch 2y and 10y nominal differentials, ois spreads and xccy. Oil is directly connected to the current account side of their country generating national income. The others are connected to the capital account.