“He who establishes his argument by noise and command shows that his reason is weak.”
--Michel de Montaigne
Commentary & Analysis
Will Aussie follow Cad’s path – down against the dollar? I don’t know, but willing to bet…
My editor’s note is this: I realize correlation isn’t causation. I realize correlations can change at any moment because every moment in the market is unique. I realize it isn’t always easy to determine which variable leads and which follows in a seeming correlation; it may be neither as both may be driven by some other narrative/variable/rationale, etc. But sometimes divergences in prior correlations which have stood for a while can represent nice setups for a winning trade.
A divergence setup between CAD and Aussie may be in play. Read more...