Overview:

Commonly known by traders as the “Loonie” due to the Loon Bird appearing on the One Dollar Canadian Coins, USDCAD is related closely to the price of Oil due to this commodity being Canada’s main export, with Oil traded in USD this therefore means that the value of CAD will strengthen compared to the USD if the price of Oil rises. This currency pair tells traders how many Canadian Dollars are needed to buy one unit of US Dollars.

Key Facts:

USD

• The Central Bank of the United States is the Federal Reserve (sometimes referred to as the Fed).
• USD is the main global reserve currency and the United States of America (U.S.A) is the largest economy in the world.
• The (US Dollar) USD is used to price most global commodities (including Oil and Gold).
• The US has a well developed economy with high productivity levels and is fuelled by huge natural resources.
• The International Monetary Fund (IMF) states that the US Gross Domestic Product (GDP) is $15 trillion and makes-up c. 23% of global GDP to exchange rates.

CAD