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- USDCAD - US Dollar to Canadian Dollar
USDCAD USD/CAD
US Dollar to Canadian Dollar
US Dollar to Canadian Dollar
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An important support level was broken at 1.33 for the USDCAD. The next key support level, which is now my target, is located at 1.3050. The 1.33 level was confirmed to be strong in July 2022, while 1.3050 has been a historically strong support level since June 2021. It was proven to be a strong one even in 2009 and 2004. Thus, I am considering opening new short positions below 1.33. To avoid unnecessary risks, I will place a stop loss order above this level.
US Dollar to Canadian Dollar
- The Canadian Dollar is a commodity-driven currency, which has exposure to some commodities like crude oil and gold, which the country largely exports. So, the movement of crude and gold prices drive the Loonie exchange rate;
- CAD is also a risky asset as it is a commodity-driven currency. Thus, rising appetite for risk, booming stock markets, global declining interest rates, and moderate inflation supports the Loonie, and puts pressure on USDCAD;
- The Canadian economy is heavily dependent on the United States, its major trading partner that consumes 85% of exports originating from Canada. Any negative developments for the U.S. economy puts pressure on the Canadian Dollar exchange rate. Such issues may amplify or limit USDCAD movements, or the Loonie movements vs European currencies. So, if the U.S. economy is slowing down, the Federal Reserve will lower its interest rates, which is a negative development for the U.S. Dollar, the DXY will go down, and the Dollar will weaken against EUR, GBP, CHF, or other currencies. But this is also negative for the Loonie. So, the USDCAD could go up despite a weakening Greenback.
Such incentives could amplify CAD movements, especially on cross-rates with elevated volatility. When the Euro or the British Pound are strengthening, the EURCAD and GBPCAD are gaining more momentum with the weaker CAD.
Ticker | USDCAD USD/CAD |
Contract value | 100000 USD |
Maximum leverage | 1:500 |
Date | Short Swap (pips) | Long Swap (pips) | No data |
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Minimum transaction volume | 0.01 lot |
Maximum transaction volume | 70 lots |
Hedging margin | 50% |
USD Exposure | Max Leverage Applied | Floating Margin |
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