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cashback forex Oh Canada, Uncle Sam, the environment, the bestforexrebatefluence of France It What is forex rebate well known that Canada has created some of the most amazing things in the world, such as basketball, baseball, maple syrup, etc. Canada, which occupies most of North America, stretches all the way to the Pacific Ocean, east from the Atlantic Ocean, leading to all roads It has ten provinces forexrebatenetwork three territories and is considered one of the most developed countries in the world In terms of land area Canada is second only to Russia Given its sheer size and contribution to the world, you can imagine that Canada and the domestic currency, the Whatisforexrebate dollar, are important to the foreign exchange world Canada: Facts, Figures, Characteristics - Neighbors: United States - Dimensions: 3,855,101 square kilometers    & nbsp;            -Population: 33,311,389 -Density: 8.6 people per square mile -Capital: Ottawa -Head of State: Queen Elizabeth II represented by Governor General Mitchell -Premier Representative: Stephen Harper -Currency unit: Canadian dollar (CAD) Main imports: machinery and equipment, automobiles and parts, electronics, crude oil, chemicals, electricity, consumer durables - Main exports: automobiles and parts, industrial machinery, aircraft, telecommunications equipment, electronics, chemicals, plastics, fertilizers, wood pulp, lumber, crude oil, natural gas, electricity, aluminum, Steve Nash, Sidney Crosby Crosby - Import partners: US 54.1%, China 9.4%, Mexico 4.2% - Export partners: US 78.9%, UK 2.8%, China 2.1% - Time zone: GMT - 8 sec - 7 sec - 6 sec - 5 sec - 4 sec -According to the International Monetary Fund, Canadas economy is the eighth largest in the world, making it part of the G8. Despite having a strong industrial and manufacturing sector, a large portion of Canadas GDP actually comes from its service sector whose advanced services, employing three-quarters of the workforce, account for 70% of the countrys GDP. that he works in the service sector usually, you win! Canadas economy really got going in January 1989, when the Free Trade Agreement came into effect. The agreement essentially eliminated all U.S. tariffs (i.e., taxes levied on trade) with Canada, and in fact, Canada now exports up to 80% of its goods to the U.S. Monetary and Fiscal Policy The Bank of Canada (BOC) is the main governing body that determines the countrys monetary policy. This monetary policy is decided by the Board of Governors, which consists of the Governor of the Bank, the Deputy Governor and four other Governors. Unlike the central banks of other countries, the central bank does not set a time for policy changes and the Board of Governors holds a single business day to change monetary policy, which they do at any time like the Banks basic mandate is similar to the others, as their goal is to ensure that the value of the Canadian dollar is stable in the country Inflation is within the target of 1-3% and the central bank achieves this target through open market operations and by adjusting interest rates BOC implements this through the use of open market operations methods, its so-called Large Value Transfer System (LVTS) which allows all LVTS out of Canadian commercial banks to borrow and lend money to each other so they can continue their daily operations Now, these transactions are charged at interest rates known as the Bank Rate by By changing the Bank Rate, the BOC can essentially control the flow of money in the economy To illustrate this, the Bank Rate was set at 2.00% In one of its meetings, the BOC recognized that the CAD was losing value much faster than expected, which caused businesses to raise the prices of the goods they sell and the services they provide The BOC decided to raise the Bank Rate to 2.50% increasing the Bank Rate, giving the need to pay Lenders increased interest, thus reducing the likelihood of banks, businesses and consumers taking on other debts Now, since there is less money in the pockets of consumers, while they reduce spending opportunities, preventing any further inflation who will raise prices when no one is buying, right? Understanding the Canadian Dollar You may be wondering why the nickname for the Canadian dollar is the Canadian bird, its because its engraved on the Canadian coin Come look at the other features Energy Prices and the Canadian Dollar Historically, the price of energy has been highly correlated with the USD/CAD The general rule is that when the price of oil starts to climb, Canada usually follows If the price of oil is expected to increase in the next few years, then youll want to go Sell USD/CAD! My working hours are short USD/CAD has been known to make motions within a narrow range, asking for the most part of the day only when US traders are eating cereal and the pair starts to move when the European trading session and the US trading session start to overlap... Unlike my BFFs, the USD... A key factor when looking at USD/CAD trading is that its direction is closely tied to the US economy remember, not only are they close neighbors, both the US and Canada engage in a lot of trade depending on the experience of the strong growth of the US economy, Canadas economy is usually second only to it! So once you decide to trade the CAD, take a break and see how well (or poorly) the U.S. is doing but Im still in the running for the U.S. session The CAD only starts trading when the U.S. trading session starts around 1:00 p.m. GMT The CAD is offered in the Asian trading session and the European trading session, with very little movement in the morning on the Canadian dollars important economic indicator, the Consumer Price Index (CPI) - similar to the other Since the CPI reflects increases (or decreases) in the prices of consumer goods and services, the report is closely watched by foreign exchange traders for Gross Domestic Product (GDP) - GDP is the broadest measure of Canadas economic activity and it reveals whether the country is expanding its trade balance, like other business-based countries. Like other business-based countries, the Canadian economy is highly sensitive because of the volatility of import and export economic activity Ivey Purchasing Managers Index (PMI) - The PMI is a survey of the economy to see whether businesses are optimistic or pessimistic An index above the 50.0 floor means that conditions in the business sector are increasing, while an index below 50.0 indicates that this is not the case Factors Affecting the Canadian Dollar U.S. Economic Data U.S. Economy Data is usually printed roughly at the same time as Canadian data On the one hand, positive data from the U.S. and Canada coupled with negative information can lead to a massive drop in the value of the USD/CAD On the other hand, positive U.S. economic data and poor Canadian data can cause the USD/CAD to spike higher! Mergers and Acquisitions Since mergers and acquisitions of companies occur frequently between the US and Canada, these lead to huge amounts of money flowing between the two countries, having a significant impact on the foreign exchange market For example, in the event that a US company buys a Canadian company, it must first exchange its US dollar against the Canadian dollar to complete the deal Imagine how much money that flows through the foreign exchange market just to get the contract done! CAD/USD trade USD/CAD is bought and sold in USD denominated amounts for standard lot sizes of $100,000 and mini lots of $10,000 respectively The value of the pip, which is in Canadian dollars, divided by 1 pip of USD/CAD is subject to the current rate of USD/CAD (which is 0.0001) Profit and loss are denominated in Canadian dollars For a standard lot position size, each pip movement is worth For a much smaller position size, each pip movement is worth one Canadian dollar For example, if the current rate of USD/CAD is 1.1000 and you want to trade one standard lot, then one pip would be equivalent to $6.72 Margin calculations are based on USD with 100:1 leverage, requiring a trade of $1,000 USD/CAD for 100,000 USD/CAD USD/CAD trades Strategies Since the USD/CAD is only active in the US trading session, the pair is susceptible to the other two trading sessions which means that the level of support in a USD/CAD in the morning during the important European trading session will break out, often not, simply a false out looking at the difference in results from economic data between the US and Canada is also a great practice to determine the development of the USD/CAD Since both data with the U.S. and Canada are released in just a few hours or minutes, the difference often leads to one-way action exaggerated results for example, the U.S. with positive negative Canadian will data information will be a good reason to sell USD/CAD Finally, in addition to spending some time in economic data to analyze the trading behavior of crude oil prices, will help the trade of the Canadian dollar since Canada is one of the worlds major producers In fact, since 1988, the USD/CAD exchange rate and oil prices have had a negative correlation of up to 68% How can you use your advantage? Well, if you find that over time the price of oil at your local gas station is going up, it can give you confirmation that you need additional short-term USD/CAD

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