USD/CAD
USD/CAD is the forex ticker for the exchange rate between the US dollar and the Canadian dollar. It tells traders how many Canadian dollars are needed to buy one US dollar in real time.
The pair is consistently in the top ten most-traded currency pairs in the world, and therefore traders can expect good liquidity and tight spreads.
As the pair is related to both the US and Canadian economies, traders should be mindful of the events that can move each, such as Federal Reserve and BOC policy, as well as the interest rate differential between the central banks. Additionally, due to CAD’s correlation with commodities such as oil and its pricing in USD, it is useful to observe the oil price for clues as to where USD/CAD could be headed next.
EUR/CAD
EUR/CAD is the forex ticker for the exchange rate between the Euro and the Canadian dollar. It tells traders how many Canadian dollars are needed to buy one Euro in real time.
As it is not in the top ten most traded pairs, EUR/CAD is less liquid than major pairs such as USD/CAD. However, it can be more volatile than many of the majors, leading to potentially profitable movements – as well as commensurate risk of course. As with all CAD pairs, traders should be mindful of the impact of oil prices, but also European Central Bank meetings in addition to BOC ones.
AUD/CAD
AUD/CAD is the forex ticker for the exchange rate between the Australian dollar and the Canadian dollar. It tells traders how many Canadian dollars are needed to buy one Australian dollar in real time.
As another of the lesser-traded pairs, AUD/CAD is less liquid than major pairs and can also see big swings. While Australia and Canada do not trade with each other that much, they both share a status as commodity currencies, which means that the strength of each currency can be influenced by the respective country’s supply and demand patterns and relationship with their trade partners.