The history of the USD/CAD currency pair has begun since the end of the 70s of the last century. Before those times, the Canadian dollar was not popular. The starting role in the universal recognition of the Canadian currency was played by oil. Exploration work in the promising oil-bearing regions of the Canadian Arctic began in the 1950s, and soon there were about a hundred deposits in Canada. These events were of great importance for the economic development of the country.
The main goal of introducing the Canadian dollar to exchange trading was to simplify the calculations for the sale of oil products from Canada in the markets of many countries of the world, as well as the desire to fix the cost of this raw material product separately for each state.
Today, Canada is one of the largest trade partners of the United States, in favor of this is not only a common border of about 9,000 kilometers, but also a number of trade agreements. First of all, the North American Free Trade Agreement (NAFTA), which was based on the desire of the companies of both countries to conduct mutually beneficial cooperation.
In terms of gross domestic product, Canada's economy is currently ranked 14th in the world, and annual trade between the US and Canada exceeds 1.4 trillion Canadian dollars. US exports to Canada are higher than US exports to EU countries.
The most important areas of interaction between the economies of the two countries, in addition to energy, are the automotive sector and agricultural production. The so-called “Automobile Agreement” between the two countries eliminated all customs issues. In agriculture, a third of Canada's food products are exported to the United States. On top of that, the United States is Canada's largest investor.
The US dollar is the official currency within the United States of America. According to the most famous version, the name of the monetary unit leads from the name of the coin of the Middle Ages toler, which was minted in Germany. As a rule, portraits of American presidents are depicted on the front side of the banknote, and historical monuments on the back.
In recent years, the euro has shown serious competition to the dollar, although the US currency is still highly valued by the central banks of most countries that store their cash reserves in US dollars. Also, the dollar is the main settlement currency between states in the framework of international trade and in settlements using payment systems, with the exception of EU countries, where consumers pay more attention to the euro.
The USD/CAD pair is one of the few in which the US dollar is considered the base currency, not the quotation one. Forex traders have long called this pair “looney”. A similar name leads to a waterbird loon. The pair is considered quite volatile, which is sometimes associated with fluctuations in oil prices.
Trading rules for the USD/CAD currency pair are considered normal, you should not use maximum leverage, it is better to trade in the short term. It is necessary to set stop loss on short segments from the entrances to positions and take into account lows and highs. Remember to apply technical and fundamental analysis, do not forget to clearly record statistics, monitor the correspondence of the volume of transactions and cash deposit