CAD

The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally introduced in 1858, the CAD has since its inception maintained a strong tie to the US dollar.This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, with Canada in turn importing over half of its goods from its southern neighbor. For brief periods of time the CAD has been fixed to the US dollar over its history. Presently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency.What Factors Affect the CAD?Forex traders tune into a variety of factors and metrics when trading the CAD. The value of the CAD is strongly correlated to the strength of global commodity prices such as oil.As a producer and exporter of oil and other commodities, Canada benefits from stronger crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa.Furthermore, a number of domestic factors can also influence the CAD. This includes interest rates set by the BoC, domestic inflation rates, trade surpluses, and foreign investment & direct payments.
The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally introduced in 1858, the CAD has since its inception maintained a strong tie to the US dollar.This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, with Canada in turn importing over half of its goods from its southern neighbor. For brief periods of time the CAD has been fixed to the US dollar over its history. Presently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency.What Factors Affect the CAD?Forex traders tune into a variety of factors and metrics when trading the CAD. The value of the CAD is strongly correlated to the strength of global commodity prices such as oil.As a producer and exporter of oil and other commodities, Canada benefits from stronger crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa.Furthermore, a number of domestic factors can also influence the CAD. This includes interest rates set by the BoC, domestic inflation rates, trade surpluses, and foreign investment & direct payments.

The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.

The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.

Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.

Originally introduced in 1858, the CAD has since its inception maintained a strong tie to the US dollar.

This is due to the high degree of trade between the two countries, with the United States receiving the vast majority of Canadian exports, with Canada in turn importing over half of its goods from its southern neighbor.

For brief periods of time the CAD has been fixed to the US dollar over its history. Presently, the Bank of Canada (BoC) is responsible for intervening to maintain the value of the currency.

What Factors Affect the CAD?

Forex traders tune into a variety of factors and metrics when trading the CAD. The value of the CAD is strongly correlated to the strength of global commodity prices such as oil.

As a producer and exporter of oil and other commodities, Canada benefits from stronger crude oil prices. When commodity prices rise, Canada’s terms of trade also generally improve, and vice versa.

Furthermore, a number of domestic factors can also influence the CAD. This includes interest rates set by the BoC, domestic inflation rates, trade surpluses, and foreign investment & direct payments.

Central Banks

BOC Macklem says expects to hike rates even further

BOC Macklem says expects to hike rates even further

Eamonn Sheridan
Eamonn Sheridan
Tuesday, 01/11/2022 | 22:33 GMT-0
01/11/2022 | 22:33 GMT-0
News

Canada October S&P Global manufacturing PMI 48.8 vs 49.8 prior

Canada October S&P Global manufacturing PMI 48.8 vs 49.8 prior

  • October PMI from S&P Global for Canada
Adam Button
Adam Button
Tuesday, 01/11/2022 | 13:31 GMT-0
01/11/2022 | 13:31 GMT-0
Technical Analysis

USDCAD back below 200 bar MA on the 4-hour chart

USDCAD

USDCAD back below 200 bar MA on the 4-hour chart

  • The 100 bar MA on the 4-hour comes in at 1.35706. Trend line also rebroken to the downside
Greg Michalowski
Greg Michalowski
Wednesday, 26/10/2022 | 16:41 GMT-0
26/10/2022 | 16:41 GMT-0
Central Banks

Macklem Q&A: Expects to see growth near-zero for the next few quarters

Macklem Q&A: Expects to see growth near-zero for the next few quarters

  • Comments from Bank of Canada governor Tiff Macklem
Adam Button
Adam Button
Wednesday, 26/10/2022 | 15:17 GMT-0
26/10/2022 | 15:17 GMT-0
Central Banks

Bank of Canada MPR highlights: Sees 2023 GDP at +0.9% vs +1.8% in July

Bank of Canada MPR highlights: Sees 2023 GDP at +0.9% vs +1.8% in July

  • Highlights of the Bank of Canada's quarterly Monetary Policy Report
Adam Button
Adam Button
Wednesday, 26/10/2022 | 14:01 GMT-0
26/10/2022 | 14:01 GMT-0
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