Correlations are far from perfect, but they can complement trends amongst markets over the longer-term and help explain the underlying dynamics of a move. Taking CAD/JPY as an example, oil prices can be a key driver of the Canadian dollar as it is a key export for the Canadian economy. Appetite for risk can also support commodity currencies such as CAD and global indices, whilst seeing an outflow from the yen (a safe haven) to support pairs such as CAD/JPY. Of course, monetary policy is also a key factor for respective economies, and the fact that economic data supports higher rates for the BOC (Bank of Canada) ... (full story)