Analysis for correlation of international oil prices and currency exchange rate of the Colombian peso
Welcome to my simple analysis that studies the correlation between international oil prices and the currency exchange rate of the Colombian peso. In the years of 2014 and 2015, the Colombian peso devaluated against the US dollar, with nefarious effects on imported goods. It is my theory that the rise of cost of imported goods will lead to incremental inflation soon. Many economist believe that the strong relationship between the balance of trade, international price of oil, and the US dollar have a strong effect on the exchange rate of the COP (Colombian Peso.)
The scope of the next analysis is to use Data Science techniques to build a strong data set of time based international quotes of WTI and Brent oil prices and its corresponding US:COP exchange rates to test said correlation, correctly measure, and if possible build a predictive model for assesing future currency fluctuations.