USD/CAD

📜 History

The Canadian dollar floated freely from 1950 to 1962, then was pegged to the US dollar at 92.5 US cents. Canada returned to a floating rate in May 1970, shortly before the Bretton Woods system ended in 1971. The Bank of Canada, created in 1934, sets monetary policy and influences the currency through interest rates. Canada's large oil and resource exports made the Canadian dollar, nicknamed the loonie, a commodity-linked currency. The 1986 oil price collapse weakened the loonie sharply. The 2008 financial crisis and the 2014-2016 oil price drop caused further large moves, with USD/CAD rising above 1.45 in early 2016. The 2020 pandemic brought another spike as oil prices crashed.

⚙️ What moves the price

• →Interest rate decisions by the US Federal Reserve and the Bank of Canada, and the gap between them.
• →Oil prices, especially WTI crude, since Canada is a major oil exporter. Higher oil usually supports CAD and pushes USD/CAD lower.
• →Economic data from both countries, such as jobs reports, inflation (CPI) and GDP.
• →Trade news between the US and Canada, including USMCA rules and tariff announcements.
• →Risk sentiment: during market stress the US dollar often strengthens as a safe haven.

Character

• •Often moves opposite to oil prices.
• •Most active in the New York session.
• •Canadian and US jobs reports are often released at the same time.

When to trade

• ✅New York session.
• ✅Swing trades on H4 in the direction of the market structure.

When not to trade

• ⛔Jobs-report Fridays (Canada and US), Bank of Canada and Fed decisions.
• ⛔Weekly US oil inventory data (Wednesday) if you trade short-term.

Our verified setups

Latest closed signals

• BUY · H4 · TP322/09+$299
• BUY · H4 · TP321/09+$299
• BUY · H4 · TP321/09+$298
• SELL · H4 · SL14/09−$101
• SELL · H4 · SL11/09−$101

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.