USD CAD Forex Live Chart
Live chart of United States Dollar (USD) versus Canadian Dollar (CAD)
USD CAD – United States Dollar vs Canadian Dollar (Loonie)
The exchange rate of the Unites States Dollar against the Canadian dollar means that how many Canadian dollars one can purchase in exchange of one American dollar. The United States dollar is considered as a major currency around the world, whereas, the Canadian dollar is not. The USD/CAD does not form a major pair, and it is considered as a commodity pair. This pairing is also known as the Loonie and the Funds.
The United States Dollar:
Everyone knows that the most common currency that is widely used around the world is United States dollar also known as American Dollar. The expensive commodities like oil and gold are traded in terms of the American Dollar. The code of the United States dollar is USD, and it is symbolically represented as $. The floating trend of currencies was started in the United States in early 1970. The controlling body of the American dollar is the Federal Reserve Board, and it is has started the international trend of floating currencies, as well. The lending interest rate is used for valuing the dollar and it is in protective control of the Federal Reserve Board.
The Canadian Dollar
The Canadian dollar is closely tied to the United States Dollar in terms of strength and value. This is because the United States and Canada both are closely tied to each other in trade. Almost 85% of the Canadian exports are sent to the United States. The Canada makes almost 50% of its exports from the United States. The Canadian exports mainly include the lumber and large holdings in oil. However, the largest factor that contributes in the value of Canadian dollar is the oil. Since 1970, the Canadian dollar is floating. Since 1988, the Bank of Canada has also had no major interference in the interest rates or in value. The Canadian economy is the tenth largest economy of the world. The Canadian dollar is also known as CAD or Loonie and symbolically it is also represented as $.
USD CAD Relationship Correlation
The United States dollar and Canadian dollar, both of these currencies has close correlation. This is because both of these two nations are sharing a large amount of trade between each other. Their relationship has always been politically very strong, as well. This has happened hardly that politics of these countries have made an impact on each other. In case of opening the trade agreements, then it is the United States that opens it with other nations. The trade between these two countries is mostly commodity related that is why there is a biggest opportunity for the profit on the oil prices and on the pair. Another way through which one earns profit through the USD CAD correlation is the time whenever Fed announces the change in the interest rate.