![]() Fed, the Federal Reserve of the United States whose president is Jerome Powell.The US Government (and its President Joe Biden): events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar and the currencies traded against it, in this case the Canadian Dollar.CAPP (Canadian Association of Petroleum Producers): Canada being a prominent oil and natural gas producer, the trade organization of that industry is very important.Canadian Government (headed by Justin Trudeau) and its Department of Finance that implement policies that affect the economy of the country.Bank of Canada (BoC, Canada’s Central bank) that promotes a safe and sound financial system within tyhe country, issuing statements and deciding on the interest rates of the country.In Canada, the organizations and people that affect the most the moves of the USD/CAD pair are: ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE USD/CAD Indices: S&P/TSX Capped Composite Index (the headline index for the Canadian equity market), S&P/TSX Global Gold Index (index of global gold securities) and S&P/TSX Capped Energy Index (benchmarks for related derivative products of Canadian economic sectors).Bonds: CSB (Canada Savings Bonds), CPB (Canada Premium Bond).This group also includes: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, GBP/JPY and EUR/JPY Commodities: oil but also gold and natural gas are to be taken into account.Of the three main fundamental factors for the USD/CAD in 2022, the comparative Canadian and US economies, central bank interest rates and the price of oil, the first is a wash, the second tilt to the US and the third is unlikely to rise sufficiently to give the loonie a long-term advantage. In the annual forecast, our surveyed contributors expect the USD/CAD to reach 1.2393 by the end of the year. The leading export market for Canada is by far the United States making its currency particularly sensitive to US consumption data and economical health. The USD/CAD is one of the three so-called “ commodity pairs”, together with AUD/USD, NZD/USD, highly correlated to commodity (especially oil) fluctuations.Ĭanada is commonly known as a resource-based economy being a large producer and supplier of oil. This currency pair is known as the "Loonie", a nickname derived from the picture of a loon, a distinctive bird which appears on one side of Canada's gold-coloured, one Dollar coin. The USD/CAD tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S.
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