USD/CAD refers to the US Dollar/Canadian Dollar currency pair and it shows how many CAD can be purchased for one USD....
Informally, the CAD is known as the Loonie, because of the loon bird which appears on one side of the Canadian $1 coin. USD/CAD is one of the most liquid, commonly traded major currency pairs, which means narrow spreads for traders. There are a variety of factors influencing the value of USD/CAD. One of the most significant of these is that the CAD is a commodity currency, meaning that its value is closely correlated to the value of a heavily traded commodity. The Canadian economy is strongly reliant on crude oil exports, so the currency will be impacted by oil prices and export capacity. In addition, the value of both currencies in the USD/CAD pair are influenced by the interest rate differential between the American Federal Reserve and the Bank of Canada. For example, an intervention by the Fed that strengthened the US dollar would weaken the Canadian dollar since more CAD would be required to buy a single USD dollar. It is also important to note that the Canadian dollar is one of the five major reserve currencies, meaning that many central banks and other leading financial institutions hold large amounts of CAD to use for international transactions as a way to minimize exposure to exchange rate risks.
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An interesting day of trading for the USD/CAD awaits traders, this as Consumer Price Index statistics are set to come from Canada.
The past four weeks of trading in the USD/CAD have found a solid trend downwards.
The USD/CAD hit a low of nearly 1.31770 on Friday of last week, this came after highs of nearly 1.33525 were seen on Wednesday of last week.
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As of this writing the USD/CAD is near the 1.33300 ratio as swift trading is being demonstrated.
The past few days of trading have seen the USD/CAD trade mostly within a price range of 1.34700 to 1.35250 with brief outliers.
The USD/CAD nearly hit the 1.35680 ratios in early trading yesterday as it kept climbing.
In the last week of March and first week of April, the USD/CAD was trading above the 1.36000 price tag with a rather sustained effort.
The USD/CAD has moved lower in the wake of the U.S Federal Reserve’s anticipated interest rate hike.
Bearish speculators of the USD/CAD who have been wagering on downside momentum to develop and remain consistent have likely been hurt the past two weeks of trading.
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The USD/CAD is trading near the 1.34360 ratio as of this writing, the currency pair has turned lower since the publication of the U.S CPI numbers which came in weaker than expected.
On Tuesday the USD/CAD briefly challenged the 1.34050 vicinity and after moving higher, then tested support near the 1.34245 ratio a few times yesterday.
The USD/CAD has continued to display the ability to trade lower early this week, but nervous and volatile results are still being produced which makes pursuing the currency pair rather dangerous.
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Sign up to get the latest market updates and free signals directly to your inbox.The USD/CAD is near the 1.37075 level as of this writing, this as the broad Forex market anticipates the U.S Federal Reserve’s FOMC Statement later today.
The USD/CAD has rallied significantly during the trading session on Wednesday, to break toward the 1.38 level yet again.
The US dollar has fallen a bit during the trading session on Tuesday, reaching down below the 1.37 level during the day.