That said, this relationship hasn’t always existed. See the graph: If you expand the time sample to more than the 10 years shown above, the correlation becomes gradually less clear. But the reason is clear: Canada has continuously expanded its oil production, and oil simply did not matter that much a few decades ago when it was not nearly the dominant revenue source it is today.
How this graph was created: Look for the Canadian/U.S. dollar foreign exchange rate and select the monthly series. Then use the Add a Series option to search for and select “WTI” (again, the monthly series). Modify this second series as follows: Switch the y-axis to the right side and create you own data transformation with formula 1/a. Finally, restrict the graph’s sample period to the past 10 years.Suggested by Christian Zimmermann and inspired by a tweet from Paul Storer, who recently passed away