EXCHANGE RATE OF USDCAD ON FOREX

The introduction of the Canadian dollar as the national currency happened in the 1858. Due to its geographical location, Canada depends on goods imported to the United States. To a greater extent this applies to the oil exports.

It turned out that cheap CAD acts as a strong support arm for Canadian products. Within the past 10 years this tendency has only evolved and the Canadian has fallen sharply against the Dollar.

The professional traders named CAD “loonie,” but not because of the bird of prey that has been printed on the Canadian dollar banknotes. CAD has been named as Loonie due to the original Loonie coins, which were only available inside the country territory.

The fundamental CAD factors

The Canadian dollar is influenced by several fundamental factors related not only to the internal economy indicators. The foreign policy has a significant impact on the CAD, in particular such factors as the fluctuations in energy prices and the state of the U.S. economy.

The fundamental factors which influence the CAD rates

BOC lending policy: changing interest rates is an important fundamental CAD factor. The reaction to a rates change may cause a rather strong rally over the Canadian;

GDP change: GDP data is a fuel for the Canadian. Coupled with the interest rates the impact on CAD price can be very strong;

The oil price also affects the CAD price. This is due to the export of Canadian oil. Export volumes have made Canada one of the leading oil supply countries;

Macroeconomic correlation: don't ignore the strong correlation with the U.S. stock market and the macroeconomic indicators of the United States.

These factors are the main fundamental ones that have the greatest impact on the Canadian dollar. The other factors don't influence the change in the price of CAD that much.

The USD/CAD price rates on real time

The online chart helps to watch the correlation of the USD and CAD price rates. Basically, the professional traders use our charts. To do this, it's not necessary to download desktop versions of trading platform, it is enough to learn the graphics settings. The setup is simple and intuitive.

The main advantages of online price chart:

Data is shown without delay, and the USD / CAD price rates are always relevant;

Flexible setting of time frames and main schedule;

“Good” historical stock rates;

Large number of technical indicators, popular and not much.

One of the advantages of using our charts is a comparative analysis of several currency pairs. With chart settings you can add from 3 or more currency pairs and compare their correlation.

Features of trading the USD/CAD currency pair

The USD / CAD trading requires knowledge not only of fundamental analysis, but also the practice of technical analysis applying. Despite the fact that CAD is considered one of the few commodity currencies, it's not so easy to forecast the USD / CAD price rate and other cross rates with CAD.

The USD / CAD trading is best suited for short and medium term traders. For beginners "Canadian" is not recommended because it’s the main reason for false breakdowns, especially in intraday trading.

What you should pay attention to when analyzing the NZD/USD currency pair

To the U.S. economy state;

To the oil prices forecasts, low prices of $45 per barrel may adversely affect the CAD price;

Political world instability, forcing large investors to buy "Canadians" and invest in the economy.

Additional tools of technical analysis.

The correlations' observation: the Canada economy like any other country is changing and as a result, new dependencies appear that can be watched and used in trading. For instance: a positive correlation with the dollar index and a negative one with gold and silver.

News control:especially for the US and European markets. News can be used as an additional fundamental analysis tool, but don't forget that USD / CAD often demonstrates false breakouts.