The USD / CAD combination is not a major, but it is a currency pair that is mainly traded by Americans and Canadians. As the overall trend is that there is a relationship with neighboring countries, economic indicators are also impacted in the same direction, so it is difficult to create a one-sided trend. Therefore, it is difficult to take a large price range because it tends to be in the range, and trend followers are a very difficult currency pair. It is a recommended pair for those who are doing the method of winning in the range.
Recommended for beginners to advanced users. Since extreme price movements are unlikely to occur, it is unlikely that all funds will disappear with one shot. Trends tend to be difficult to come out. If you want to take a large price range, we recommend the combination of euro and pound.
Recommended trading time
Since both Canadian dollars and US dollars move mainly in US time, Asian time is very quiet and always in the range. Trading recommends US time.
Recommended trading style
Suitable for scalping and day trading. Due to the characteristics of this currency pair, it is difficult to generate big trends, so it is not suitable for trend-following strategies. The strategy for the range is easier to fit.
Economic indicators to watch out for
Since the US dollar is the key currency, it has a great impact on all currency pairs, not just this currency pair. Therefore, it is necessary to pay attention not only to the policy interest rate, GDP and unemployment rate, but also to the international situation such as politics, social situation and war.
You don’t have to worry too much about Canada’s indicators, but you should keep the policy rate, GDP, and unemployment low. This area tends to move the market price significantly. In addition to the Canadian indicators, the United States is right next door, so it is greatly affected by the economic situation in the United States.
When the US dollar moves
Not only US indicators, but also US government bonds (10 years, 30 years), Nikkei Stock Average, crude oil prices, etc. will affect. Also, in the case of the United States, as it is called the police of the world, it is very sensitive to the influence of world affairs. Please note that some economic sanctions and military activities can move the dollar significantly.
When the Canadian dollar moves
It cannot be said that the Canadian dollar only needs to hold down the Canadian index. It also depends greatly on the economic situation in the United States. Let’s grasp the economic and political situation of both countries. It is a factor that cannot be ignored because it is so relevant.