Why is CAD a good currency?

CAD is a commodity currency, meaning the strength of its economy depends on the value of its exports. A large portion of Canada’s exports to the US are oil shipments. When the price of oil rises, CAD’s value also rises in relation to USD.

Why is Canada's CAD a higher value than US CAD?

A large portion of Canada’s exports to the US are oil shipments. When the price of oil rises, CAD’s value also rises in relation to USD. While the US also produces crude oil, it imports much more oil than it exports, so rises in the cost of oil will lower the value of USD/CAD.

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 USD/CAD exchange rate?

USD/CAD is the forex pair representing how many Canadian dollars are equivalent to one US dollar. A close economic relationship between these neighbouring countries means business, tourism and even general lifestyle trends are all affected by the USD/CAD exchange rate.