Canadian Dollar to US Dollar Exchange Rate

How does the Canadian dollar trade against the US dollar historically?

Close neighbors, Canada and the US have plenty of historical, trading and political ties. When it comes to forex, the Canadian dollar has generally mirrored the US dollar’s movements.

When the Canadian dollar rises against the US dollar, it often simultaneously falls against other international currencies. The relationship between the two currencies provides extra clues for economists and forex traders about shifts in the US economy.

However, since 2002 the Canadian dollar has risen consistently against the US dollar and other currencies. This rise is due to volatility in global oil prices, given Canada’s role as a major oil exporter.

Trade balance

The trade balance is the difference between the value of a country’s imports and exports over a given period. Economists use the trade balance to measure the relative strength of a country’s economy.

Nonfarm payroll

Countries typically track the number of jobs added or lost each month. In general, an economy should add jobs at a healthy pace to increase interest rates. Higher interest rates attract foreign investors, which increases interest in a country’s currency.

Gross domestic product

Countries track the monetary value of all the finished goods and services produced within their borders over a specific time. This is used to compare one country’s economy against another.

Retail sales

Retail sales is an aggregated measure of the sales of retail goods. Strong sales suggest that a country’s economy is thriving — while weak sales suggest it’s declining.

Industrial production

Industrial production data typically reflects changes in overall economic activity. Strong industrial production figures are a bullish sign for the dollar, weak data is a bearish sign.