This pairing represents the sum in Canadian Dollars (CAD) that equals the value of an American Dollar (USD). It covers nearly 4% of the turnover on the Foreign Exchange Market.
The CAD is closely tied to the USD because of close business relations between the countries. 98% of Canadian export goes to the USA and nearly 50% of imports from the USA. In terms of economics, this situation brings a certain paradox as the strong or weak USD or CAD can affect both the Canadian economy both negatively and positively at the same time. It can both weaken exports and make imported goods cheaper.
Canada is a significant exporter of crude oil so their prices can affect the CAD.
Both currencies are considered commodities, especially in relation to crude oil. The CAD is the 8th world currency, and contrary to the USD, it is not considered a reserve currency on the Global Foreign Exchange Market.Trade CAD=