![]() ![]() Due to this, the pair has relatively low risks and is suitable for investors with any level of experience and training. ![]() You can always find a fairly large array of useful and up-to-date information. The performance and dynamics of the USD/CAD rate are directly related to the volume of trade between Canada and the United States of America. The USD/CAD combination is very popular with investors around the world. The main purpose of introducing the Canadian dollar to the stock exchange was to simplify the settlements when selling Canadian oil on the world market and to set the price of Canadian oil for each country separately. USD/CAD is a currency pair that entered the Forex on January 3, 1978. So, until 1976, the Canadian dollar was somewhat more expensive than the US dollar and then weakened until 2007, when its growth was outlined. Throughout the 20th and early 21st centuries, the Canadian economy has been characterized and continues to be characterized by cyclical fluctuations in the exchange rate of the Canadian dollar. In 1950, Canada abandoned its fixed peg to the US dollar.Ĭanada and the United States have strong, durable, and historically founded economic and trade ties. ![]() In 1935, it was decided to establish the Bank of Canada, which took over issuing functions in the dominion. It was put into circulation immediately after Canada became a dominion of the empire from a British colony. In 1534, Canada became the property of the King of France, but the colonization of the country began only in 1604.ĬAD first appeared in 1858. The first currency that was used in what is now Canada was the Spanish dollar, which was issued for the Spanish colonies. Interesting facts about the USDCAD (US Dollar to Canadian Dollar) The Governing Council of the Bank of Canada regularly adjusts monetary policy according to the consumer price index. The Bank of Canada's inflation-control policy is one of the main factors in the USDCAD rate's fluctuations. Inflation data are particularly important. Paying attention to GDP, central bank policy, interest rates, and employment will be enough. One does not need to consider all the factors while making a forecast for the USDCAD pair. The economy of Canada is deeply connected with the US one: the countries are top trading partners for each other. ![]() Its rate depends on many factors as US dollars are present almost in every sector of the global economy. All these factors maintain a high demand for the USD. What's more, about 40% of global debt is denominated in US dollars. The planet's economic reserves are mostly kept in USD. The US dollar is the widest-spread currency in the world. So, the market of precious metals and the oil market have a significant impact on the CAD rate and the USDCAD pair in general. The Canadian dollar belongs to commodity currencies as the country exports huge volumes of gold and oil. That's one of the most popular Forex pairs due to its high liquidity and predictable fluctuations that are easy to analyze.Ĭanada's strong economy also explains this asset's popularity. The USDCAD shows the relationship between the US dollar and the Canadian dollar. ![]()
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