USD/CAD overview
USD/CAD — “the Loonie” — is a commodity-linked major whose price is heavily influenced by crude oil prices (Canada is the 4th largest oil producer). CAD typically strengthens (USD/CAD falls) when WTI crude rises.
What moves USD/CAD
- WTI crude oil price — inverse correlation, –0.7 over 90 days
- Bank of Canada vs. Fed — relative rate path drives the pair
- Canadian CPI + employment — released mid-month, often moves the pair 30–80 pips
- US data — given the cross-border trade relationship, US releases move USD/CAD too
Typical spread
USD/CAD trades at 0.5–1.2 pips raw on ECN brokers, 1.5–2.5 pips on standard accounts. Slightly wider than majors due to lower retail volume.