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Why is CAD considered a commodity currency?

The CAD is considered to be a commodity currency because of the large amount of natural resources, especially oil, that are mined and exported to southern neighbors. The USDCAD is one of the most traded currency pairs in the world.

Will the USD/CAD bulls stay resilient in 2023?

As things currently stand in early 2023, the respective policy outlooks of the BoC and the Fed favor USD/CAD bulls. It’s worth noting, however, that the commodity-sensitive Canadian Dollar could stay resilient against its American counterpart in case oil prices continue to rise.

What is a USDCAD / AUD / NZD?

The USDCAD is one of the three so-called “ commodity pairs ”, together with the following ones: AUD/USD, NZD/USD. These pairs are highly correlated to commodity (especially oil) fluctuations. Canada is commonly known as a resource based economy being a large producer and supplier of oil.

Will US Fed & bank of Canada continue to drive USD/CAD in 2023?

Don't miss our 2023 USDCAD forecast! The policy divergence between the Bank of Canada and the US Fed could continue to drive USD/CAD’s action in 2023.

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