As one of the world's most traded currency pairs, the USD/CAD relies heavily on the United States' and Canada's strong economic and trade partnership, close geographical location and numerous similar economic policies.
This pair is known commonly among traders as the "loonie", in reference to the Canadian term of its own one-dollar coin.
If you're considering of investing on this currency pair right now then you better click on the button below to get started. This will open eToro's trading page for USD/CAD. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Needing no introduction, the US dollar which dates back to 1792, is the most popular and sought-after currency in the world today. Any currency paired with the US dollar will amass close scrutiny and interests among traders at the same time.
The Canadian dollar meanwhile, is like the lesser known twin of the US dollar. It became a free-floating currency in 1970 controlled by the Bank of Canada (BoC), the country's central bank.
When quoted, this pair would read as 1 US$ per X Canadian dollar. For example, if the pair's value is 1.250, it equates to $1.250 Canadian dollars needed to buy 1 US dollar.
The USD/CAD has seen a price equality a few times before. Following the Great Recession of 2007-2009 and the subsequent easing from the U.S. Federal Reserve, the Canadian dollar even rose over the US dollar before closing at around $0.95.
In fact, previous parity in the value of the Canadian dollar and the US dollar have happened shortly after every period of economic instability and recession in the US economy.
The USD/CAD currency pair has a history of moving rapidly, making strong moves before spending quality time consolidating. This paved the way for traders trading this pair based on the bounces from the trend and support of resistance levels. This simple strategy has delivered small profits over the years. Another strategy is by watching closely for any breakout moves from the currency pair that can produce big profits even in a span of a few months.
The value of the US dollar affects all the currencies it is paired with. Because of this, any difference in the interest rates between the Bank of Canada and the Federal Reserve of the United States greatly affect the value of these two currencies.
The value of the Canadian dollar meanwhile, is heavily correlated with the price of commodities. Because Canada rely greatly on oil, any movement in the prices of oil in the country can also affect the current value of the USD/CAD pair.
Other factors that impact the value of the USD/CAD are hike in interest rates, monetary policies, banking laws of other countries, and the supply and demand of oil around the world.
Traders like trading this currency pair for the simple reason that it is one of the most liquid forex pairs to trade. For many traders, liquidity is the most important aspect they consider.
Another reason is the stability of the USD/CAD currency pair. At the same time, the pair also exhibits volatility that allow traders to have the opportunity of making profits from the pair's exchange rate value movement.
Traders can trade the currency pair of USD/CAD by entering a forex contract, or trade via Contract-for-difference (CFD) by speculating on the price difference between the start and end of the trade.
CFD is a financial instrument brokered between a broker and a trader or investor, where one party agrees to pay the other party the difference in the price of the asset between the beginning and conclusion of the trade.
eToro’s user-friendly interface and innovative trading platform permits traders to trade on their own time with zero transaction fees on currency trades. eToro also allow traders to trade for $30 for every $1 in their portfolio because it gives out a x30 leverage for currency pairs such as the USD/CAD.
Currently, the USD/CAD currency pair has a 52-week range of $1.20065 - $1.34200 with a 1-year return of -4.05%.
The value of the USD/CAD pair at the time this page was accessed is
If you are, you can just click the button below and this will take you to eToro's online trading platform for USDCAD. Take note that this is the live platform but if you would like to explore or use it, you will have to open an account by clicking the "Sign up" button on that page.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.