USD/CAD (Loonie): the Canadian dollar and oil

What it is

USD/CAD, called "Loonie", compares the US dollar with the Canadian dollar. Canada is a major oil exporter to the United States, so the crude price influences the exchange rate.

What moves it

• The oil price: when it rises it tends to strengthen the CAD and therefore push USD/CAD down
• Bank of Canada and Fed decisions
• Canadian employment data (which come out at the same time as the NFP)

When to trade it

It is most active in the New York session, when US and Canadian data are released and energy commodities move.

Costs

With a dollar account the pip is worth about $7 per standard lot, depending on the exchange rate.

Live chart