Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Invest in USD/CAD Charts
Moneymagpie Team
12th Nov 2024
Invest in USD/CAD and you can expect the usual array of benefits, including the following: liquidity, tight spreads, rich volatility, and of course the opportunity to make a profit. While the pair is not without its flaws, there are many reasons to consider trading it.
The most obvious reason to trade USD/CAD is the sheer volume of cross-border trading between the United States and Canada. The currency pair also benefits from proximity to one of the world’s leading economies, which in turn gives the currency a leg up on other currencies. Another advantage is that the pair is a major exporter of commodities and materials. These factors can add upward pressure to the exchange rate. Moreover, the Bank of Canada’s monetary policy decisions also have a bearing on the future of the CAD.
The best time to trade the pair is during the North American trading session. This is not only because it has the highest daily volume, but also because it offers the best leverage. This allows individuals to trade on both sides of the market, and make large profits in a short period of time.
Despite the massive volume of trade, the currency pair does have its share of risk. The key is to find the best time to trade, which can be done by researching the market, and using the most efficient strategies.
The best time to trade the pair can be found in the most crowded trading session of the day, which occurs between 08:00 and 17:00 EST. The nine-hour window provides the most leverage, and the most profit potential. A nine-hour trading session is also the most likely to occur during the holiday season, which means it is a great time to make the most of your dollars.
Invest in the most prestigious currency pairs such as the USD and CAD, and you will find that the pair has some unique qualities. These include the fact that it is the world’s most traded currency, and it is also one of the most influential. The pair has also been in the spotlight on some of the most popular trading platforms, making it a popular choice amongst traders. The pairing also exemplifies the fact that currencies are a reflection of global macroeconomic conditions. Among the many factors that affect the currency pair, the largest influences are interest rates and oil prices. Considering the fact that the United States is the world’s largest economy, it is no wonder that the currency is a key player in the foreign exchange market. Moreover, the proximity of the US to Canada has helped strengthen the import/export industry in Canada.
There are a number of reputable websites that offer a comprehensive overview of the market. One of the most comprehensive is the Bank of Canada’s website, which features monthly and annual exchange rate charts, as well as a list of economic indicators for the country. These data points can be used to help predict the currency demand of the future.
MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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