Which Currencies Do Oil Prices Impact The Most?
The Canadian Dollar, Norwegian Krone and Russian Ruble are the three currencies most influenced by oil prices.
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
Quick question here, which currency do oil prices impact the most?
Well first of all the Canadian Dollar is heavily impacted by oil prices. Around 14% approximately of all Canadian's exports are oil related. And as a result, the Canadian Dollar is a petrocurrency and any falls in the oil markets result in weakness in Canadian Dollar and any rises and strength in the oil market result in Candaian Dollar strength. So with weak oil we expect weak CAD and with strong oil we'd expect strong CAD.
Here's an overlay of the US Dollar, CAD currency pair on the weekly chart. And you can see that, you know, as oil prices fall US Dollar, Canadian Dollar prices rise. As oil prices fall, US Dollar, Canadian Dollar rise.
Now this is because most of Canada's oil exports go directly to the US. So there is this inverse correlation between oil prices and the US Dollar, Canadian Dollar. Another currency that is heavily impacted by oil prices is the Norwegian Krona.
The Norwegian Krona has around 21.5% of it's GDP, Nearly 50% of all exports are oil related. So, again with falling oil, we tend to see weakness in the Norwegian Krona and with rising oil strength the Norwegian Krona.
Finally the Russian Rubble. 70% of all exports are energy related in Russia. And, around 50% of the total Federal Budget Income from Russia comes from an energy source.
So, the Canadian Dollar, the Norwegian Krona, and the Russian Rubble are three currencies which oil prices have the most impact on.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
-----
Quick question here, which currency do oil prices impact the most?
Well first of all the Canadian Dollar is heavily impacted by oil prices. Around 14% approximately of all Canadian's exports are oil related. And as a result, the Canadian Dollar is a petrocurrency and any falls in the oil markets result in weakness in Canadian Dollar and any rises and strength in the oil market result in Candaian Dollar strength. So with weak oil we expect weak CAD and with strong oil we'd expect strong CAD.
Here's an overlay of the US Dollar, CAD currency pair on the weekly chart. And you can see that, you know, as oil prices fall US Dollar, Canadian Dollar prices rise. As oil prices fall, US Dollar, Canadian Dollar rise.
Now this is because most of Canada's oil exports go directly to the US. So there is this inverse correlation between oil prices and the US Dollar, Canadian Dollar. Another currency that is heavily impacted by oil prices is the Norwegian Krona.
The Norwegian Krona has around 21.5% of it's GDP, Nearly 50% of all exports are oil related. So, again with falling oil, we tend to see weakness in the Norwegian Krona and with rising oil strength the Norwegian Krona.
Finally the Russian Rubble. 70% of all exports are energy related in Russia. And, around 50% of the total Federal Budget Income from Russia comes from an energy source.
So, the Canadian Dollar, the Norwegian Krona, and the Russian Rubble are three currencies which oil prices have the most impact on.
-----
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it
https://bit.ly/2HFykNd
