The swell in the price of crude oil (WTI contract May 2020) into negative territory is perhaps the biggest shock in the history of world financial markets. Never before in the world's petroleum history has this happened.
The shock that occurs in oil prices (plus the impact of changes in fund resilience due to drastic contract price changes) may cause some traders to be reluctant to re-open positions in these commodities. But then, can't we look for other opportunities related to the movement of crude oil prices?
It turns out that we can still look for opportunities in other instruments, but it is still related to the movement of crude oil prices. The instrument in question is the USDCAD currency pair.
Why USDCAD?
Since 2000, the correlation between USDCAD and crude oil prices is a negative 93%. This means that the direction of movement of the two instruments tends to be in opposite directions. When crude oil prices move down, USDCAD will usually move up and vice versa.
