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Pairing – The amount of Canadian dollars (CAD) that one can buy for every United States dollar (USD).
USD – World’s most traded currency
CAD - World’s sixth most traded currency
Commodities – The strength of both currencies is heavily influenced by oil prices, especially the Canadian dollar, as Canada has the second largest oil reserves in the world. Canada’s economy and currency is also dependent on the price of timber and coal, whereas the US is more affected by technological products, and, increasingly, agricultural prices.
Economy – The close proximity of the two countries mean that the two currencies can move in line with each other, but if the price of oil goes up, or the US economy suffers, then this pairing will be negatively affected.
Political factors – The recent election of President Trump saw repercussions in the value of the US dollar, whereas the seemingly stable economic and political situation in Canada means the CAD has stayed steady.