USD/CAD - US Dollar / Canadian Dollar - Forex Currency Pair

usdcad

Live Charts

Timeframes:
Bid | 1Min | 5Min | 15Min | 1H | 4H | 1D |1W
Ask | 1Min | 5Min | 15Min | 1H | 4H | 1D |1W

The USD/CAD Currency Pair (U.S. Dollar / Canadian Dollar) is the exchange rate of U.S. dollar expressed in Canadian dollars. It expresses the value of one U.S. dollar in Canadian dollars. Forex professionals also nicknamed the Loonie.

The USD / CAD is the 6th most traded pair and represents 5% of total transactions on the FOREX in 2010. From 2008 to 2010, volatility of parity U.S. Dollar / Canadian Dollar has been about 140 pips.

The CAD is renowned for its correlation with oil. Canada being a major oil producer and also a major exporter, the evolution of the Dollar Canadian / Yen is linked to oil prices. When the price of oil rises, the CAD appreciates. This correlation may increase in future years. Canada has the 2nd largest oil reserves in the world and might therefore play an increasingly important role in the formation of oil prices.

The evolution of the USD / CAD pair is also very dependent on the economic health of the U.S., preferred economic partner due to its proximity with the Canada. The economic news on the U.S. thus have a major impact on the USD / CAD.

Since its creation, the USD / CAD has fluctuated between $ 0.9058 reached in 2007 and reached $ 1.6188 in 2002.

The pair USD/CAD is quoted in 4 decimal places but you can sometimes find 5 with some brokers. The exchange rate is floating and therefore subject to the law of supply and demand on the interbank forex market.

Both central banks linked to the pair Euro / US Dollar are the Canadian Central Bank for the CAD and the Federal Reserve (FED) for the USD. Both banks rarely intervene directly to change the exchange rate. However, all decisions taken by these two central banks have a strong impact on the evolution of the USD / CAD(changing interest rates, asset buyback program ....)

Share your Analysis and your Trade Ideas : Forex

US DOLLAR (USD):

The U.S. Dollar (USD) is the currency of the United States. The U.S. dollar is the most traded currency on the Forex and is present in 85% of total transactions in 2010. In 2001, 90% of transactions were linked to the Dollar. The U.S. dollar is a currency of reference both in the foreign exchange market and in international trade.

The dollar is still considered a safe haven even if the contestations are becoming more numerous. Indeed, the debt of the United States but is becoming alarming, but does not challenge the supremacy of the dollar.

 The dollar is also the most used currency in reserve in the world especially in China which has 2.5 trillion dollars in foreign currency reserves.

In terms of banknotes in circulation, the dollar is the second currency in the world. You can see below a $1 banknote :
US DOLLAR

The U.S. dollar is controlled by the Federal Reserve (FED) that is responsible for making monetary policy decisions.

CANADIAN DOLLAR (CAD):

The Canadian Dollar (CAD) is the national currency of Canada. The Canadian Dollar is the 7th most traded currency on Forex, just behind the Swiss Franc. The CAD is present in 6.30% of total transactions on the Forex in 2010.

Its notoriety is largely due to the fact that Canada is a major producer and exporter of oil. The Canadian dollar is heavily influenced and correlated to oil prices. Besides, the Canada has a good reputation of financial management because it is one of the few countries to not have widened its deficit during the crisis.

 You can see below a 100 Canadian Dollar banknote:

CAD Canadian Dollar

The Canadian Dollar is controlled by the National Bank of Canada which is responsible for making monetary policy decisions.

Join us : Forex