What is the „Loonie“?
USD/CADWhat is the "Loonie"? USD/CAD is a currency pair consisti... is a consisting of the and the . This pair is known as the , or sometimes the „Funds“.
It shows how many Canadian dollars (the ) it costs to purchase one US dollar (the ).
Trading USD/CAD „Loonie“
The Loonie is one of the seven major currency pairs that contain the US dollar and are the most traded pairs on the . Due to the large amount of trading, it is considered to be very .
As currency pairs are affected by external factors that influence an individual currency value, the USD/CAD will fluctuate according to the difference in set by the and the . For example, any intervention by the Fed in the markets aimed at strengthening the US dollar would be likely to see a rise in the value of the USD/CAD.
Historically, the Canadian dollar has generally reflected the US dollar’s own movements, rising against the US dollar while simultaneously falling against other international currencies and vice versa. This relationship also provides extra clues about shifts in the US economy generally to economists and . Also see .
Since around 2002, however, the CAD has risen consistently against the USD as well as other international currencies. in global prices has also been matched by volatility of the CAD as a petrocurrency (a currency in which oil is being bought) because of Canada’s role as a major oil .
The USD/CAD generally has a negative with the currency pairs , and , even over long periods, as the US dollar in these pairs is the quote currency rather than the base currency.
To learn more about the economic impact on currency pairs, visit:
