USD/CAD Exchange Rate

The USD/CAD chart takes into account the way the US dollar moves against its Canadian counterpart.

The Canadian dollar or “loonie,” is a gold-colored one-dollar coin introduced in 1987 which bears images of a common loon, a bird which is quite common in Canada. The coin entered circulation on June 30, 1987, as 40 million coins were introduced into major cities across the country. Two years after the loonie's introduction, the Bank of Canada totally ceased production of the dollar banknote. The final dollar bills were printed on June 30, 1989.

The loonie has become the national symbol of the Canadian dollar and has become synonymous with the Canadian dollar itself. The financial media refer mostly to the loonie when discussing its rate against other currencies.

CAD-A Reserve Currency

The Canadian dollar has developed into a global reserve currency since the 1970s when it was floated against all other world currencies and even today, a number of central as well as commercial banks retains Canadian dollars as a reserve currency.

In addition, the Canadian dollar is considered to be a benchmark currency. By charting how the Canadian dollar behaves against the U.S. dollar, foreign exchange economists can indirectly detect internal patterns and performances in the U.S. economy that may not be seen so easily by direct observation.

USD/CAD exchange rate

Banking announcements and interest rate fluctuations are the largest determining factors for the USD/CAD exchange rate but due to the lack of political volatility associated with the U.S. and Canada, trading USD/CAD isn’t as common as is the trading of other currency pairs.

Be that as it may, there do arise some excellent trading opportunities for USD/CAD and by staying tuned to the daily and weekly DailyForex.com trading reports, you will read about them in time to place a profitable trade.