EXCHANGE RATE OF EURCAD ON FOREX

The EUR / CAD cross-rate shows the ratio of the European Union currency to the Canadian dollar. In this case, EUR is the "Base" currency, and CAD is the "Quote" currency.

Both trading assets have a high liquidity level, because Canada and few countries of the European Union are included in the G7 and can be used in any type of trading - from scalping to long-term strategies. Activity persists both in the European and American trading sessions.

Canadian dollar - the features of trading

What you should know when trading Canadian dollar:

• dynamic economic communication with the USA. Since 84% of Canadian exports go to the United States and 56% of imported goods come from the United States, the power of the American economy and US export demand significantly affect the capital inflows into the Canadian dollar;
• close correlation with the oil price. CAD is often used as an oil price index. Canada is a natural resource-rich country, and its economy highly depends on the export of goods and goods' prices. Canada is one of the world's largest producers of crude oil, so there is a strong correlation between the CAD rate and the price of oil;
• high volatility of this trading pair. The speed of the CAD rising or falling often indicates the level of risk and volatility in the oil market. The Canadian dollar, at the same time, has become an attractive alternative reserve currency instead of the dollar, in part because of Canada’s high credit rating (AAA) and credible Central Bank policies. The Canadian dollar is getting strong during the period of the trade wars escalation because investors want to diversify their portfolios and get profit from rising commodity prices.

Economic factors that affect the price of the Canadian dollar

The Canadian dollar is trading most actively from 12:00 to 13:30 GMT. In the remaining hours of the session, the CAD liquidity is fading, and price movements are sometimes volatile and unpredictable. You should carefully watch the following economic data that may affect the Canadian dollar: interest rate decisions of the Canada Central Bank, consumer prices / services / inflation, PMI IVEY index, trade balance and employment rate of Canada.