3.04 - CAD is standing up to USD. Who will win the battle?
- by Anna K.
There are currencies which are tied to the prices for the oil crude which is produced by the country holder of the currency. The more price the oil gains, the more expensive and stronger the currency gets. And Canadian dollar is one of these currencies. And as oil is climbing higher and higher these days, CAD is also getting stronger against the greenback. Even though Canada is wrapped into a political scandal of its own [Justin Trudeau is finding himself in a situation where he might be forced to resign] traders do not seem to mind it at all, supporting CAD.
This USD/CAD chart shows us how much traders are willing to keep CAD strong as well as how much oil prices can influence equity market. Until WTI oil is gaining price, CAD is also going to be very stable against the greenback.
Those who follow the couple are going to see a lot of swings in the performance of the USD/CAD as we are facing quite an uncertain time right now. Using your trading signals on USD/CAD is most necessary right now.