USD/CAD Trading Positions
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 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.”
Related Trading Position Post
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