USD/CAD refers to the US Dollar/Canadian Dollar currency pair and it shows how many CAD can be purchased for one USD....
Informally, the CAD is known as the Loonie, because of the loon bird which appears on one side of the Canadian $1 coin. USD/CAD is one of the most liquid, commonly traded major currency pairs, which means narrow spreads for traders. There are a variety of factors influencing the value of USD/CAD. One of the most significant of these is that the CAD is a commodity currency, meaning that its value is closely correlated to the value of a heavily traded commodity. The Canadian economy is strongly reliant on crude oil exports, so the currency will be impacted by oil prices and export capacity. In addition, the value of both currencies in the USD/CAD pair are influenced by the interest rate differential between the American Federal Reserve and the Bank of Canada. For example, an intervention by the Fed that strengthened the US dollar would weaken the Canadian dollar since more CAD would be required to buy a single USD dollar. It is also important to note that the Canadian dollar is one of the five major reserve currencies, meaning that many central banks and other leading financial institutions hold large amounts of CAD to use for international transactions as a way to minimize exposure to exchange rate risks.
Most Recent
The USD/CAD initially dipped a bit during the trading session on Tuesday but found enough support near the 1.34 level, as the Canadian dollar did not seem to pay much attention to the fact that oil recovered.
The US dollar has bounced back a bit during the Friday session on thin volume against the Canadian dollar.
The USD/CAD drifted a little bit lower during trading on Thursday and what would have been very quiet trading.
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The USD/CAD has moved lower after hitting a short-term high on Monday, the downwards momentum has returned the currency pair back to its recent bearish mode.
The USD/CAD has rallied significantly during the trading session on Monday to break above the 50-Day EMA and threaten the 1.35 level.
The USD/CAD has rallied a bit during the trading session on Friday, as it looks like we are going to threaten the 1.34 level.