The loonie is up and down like a game of whack-a-beaver
The best time correlations work is when there's not much else going on in the market. With the Fed hike all but done, USDCAD is firmly locked into the movement in oil. It's never far away but right now they're two peas in a pod.
USDCAD and WTI
Another correlation is the yen and the Nikkei (futures in this instance)
USDJPY and Nikkei futures
When the market doesn't have bigger fish to fry it goes looking for the smaller catches and thus correlations work better.
Once we're over the Fed we might start to see these tight nit cousins breaking their bonds. Until then, you need eyes on more than one market.
