USD/CAD Trading Positions

USD/CAD

The USD/CAD pair tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). This currency pair is also known as the "Loonie".


Important assets for USD/CAD

The USD/CAD is one of the three so-called “commodity pairs”, together with AUD/USD, NZD/USD. These pairs are highly correlated to commodity (especially oil) fluctuations.

Gonçalo Moreira, FXStreet analyst, explains the correlations that exist between oil, the USD and the CAD: "If Canada is one of the world's largest producers of oil and oil is such a big part of the US economy, rising oil prices tend to have a negative effect on the USD and a positive effect on the CAD. Here you have two nice correlations.”


THE OIL FOR THE LOONIE

The USD/CAD is one of the three so-called “commodity pairs”, together with AUD/USD, NZD/USD, highly correlated to commodity (especially oil) fluctuations.

Canada is commonly known as a resource-based economy being a large producer and supplier of oil. The leading export market for Canada is by far the United States making its currency particularly sensitive to US consumption data and economical health.

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE USD/CAD

In Canada, the organizations and people that affect the most the moves of the USD/CAD pair are:

  • Bank of Canada (BoC, Canada’s Central bank) and its president is Tiff Macklem.
  • Canadian Government (headed by Justin Trudeau) and its Department of Finance that implement policies that affect the economy of the country.
  • CAPP (Canadian Association of Petroleum Producers): Canada being a prominent oil and natural gas producer, the trade organization of that industry is very important.

In the USA, we have:

  • The US Government and its President Donald Trump.
  • Fed, the Federal Reserve of the United States whose president is Jerome Powell.

In terms of economic data, we should highlight the Trade Account Balance and also Inflation.


Currency Trading Positions

The purpose of the Trading Positions table is to provide a glance of USD/CAD as to where our dedicated contributors are currently positioned. You can access the original analysis reports by clicking on each position.