The existence of the USD/CAN currency pair dates back to the 1970s. The Canadian Dollar wasn’t popular until the works in the promising oil regions of Canada haven’t begun. The Canadian currency soon after the oil region’s discovery gained recognition worldwide. These events lead to the great development of the country’s economy.
The reason for which the Canadian dollar was introduced on the exchange markets is to make the process of selling oil to other countries a lot easier and to state the cost of this material separately for each country.
Canada has become one of the largest and powerful partners of the US. It is due to not only the 9,000 kilometers long border within these countries, but also due to the big number of business agreements. The most important of those agreements is the NAFTA, which is based especially on mutually beneficial cooperation.
Canada’s economy is ranked 14th in the world in the gross domestic product list. Moreover, the total of the annual trade between Canada and the USA is more than 1.4 trillion Canadian dollars. The most popular economic areas within which the countries interact are the energy sector, the automotive sector, and agriculture. The countries signed an agreement that has eliminated all of the customs between them, called the “Automobile Agreement”. Besides, more than the third part of Canadian food production is being exported to the US. And also, the largest Canada’s investor is the US.
The national currency of the United States is the dollar. The most popular and truthful version of the creation of this currency says that its name comes from the German “toler”, which is the name of the coins that at those times were produced in Germany. The US dollar bills depict portraits of the American presidents on the front side and historical monuments on the other side.
Nowadays, the US dollar remains to be popular among the central bank of most of the countries, even though the euro has been a powerful competitor of the US currency. USD is the main currency with which deals are carried out and payments are made internationally, but in Europe, still, most of the countries pay more attention to the euro.
USD/CAD currency pair on the Forex market
In this currency pair, USD is considered to be the base currency, which is very unusual, because within other currency pairs dollar is the quotation one most of the time. The pair has been called by Forex traders “looney” for quite a long period. This pair is directly dependent on the rise of oil prices.
The usual, normal rules apply to trade in the USD/CAD currency pair. Some of the rules include to use the maximum leverage and to trade in the short term for the best profit. Also, you should take into account the lows and highs. Traders should remember to do a thorough analysis, both the fundamental and technical one and you must clearly record the statistics. If you will follow all of the rules, a great profit will be granted to you.
