If we are talking about the dollar Canada and its pair, dollar US, it is the most traded currency that is always on the world trading. USD/CAD becomes the favourite currency to be traded because CAD admitted as commodity currency because they have a big amount of resource, especially oil that exported to the southern neighbour.
Unlike other currencies trend nowadays which most of them are going down especially in this Europe session, USD/CAD is getting stronger day by day. this pair got some aggressive buy offering and getting up significantly through the main psychological level 1.3500. it's higher since the beginning of January. This information officially announced by Bank of Canada.
What Is Actually Happen To USD/CAD
These days, the pair of USD/CAD keeps on increasing in its currency value. It has reached to the highest level in Wednesday Trading up to 1.3520. It happened because of the good factors that supported it so much. Bank of Canada has contributed a lot in maintaining the stability of the USD/CAD currency value by making a great decision.
Bank of Canada sees that there is still a big possibility about the currency derivation in global growth activity caused by the concern of trading problem. And because of this issue, Bank of Canada od BoC considers keeping the interest rate in the level of 1.75%. This decision brought a good result that USD/CAD are not going weaker.
Besides the decision of keeping the interest rate, BoC also has thought that there's still uncertainty which related to the trading conflict that broke the sentiment and entrepreneur activity. It contributed a lot to the deceleration in many countries. It could bring USD/CAD down day by day and touched its lowest level.
Global Economic Uncertainty Impacted the USD/CAD Movement
As it has mentioned above that the economic uncertainty triggered trading conflict and brought the sentiment. But not only that, but this economic uncertainty issue is also brought impact towards the oil prices. The oil prices can affect the USD/CAD currency value. There is a strong tight between USD/CAD and the oil prices that could not be denied.
As we know that Iran and Venezuela as OPEC member had received the economic sanction from the US for not exporting the raw oil to another country. That is why these two countries make world oil prices become higher significantly. And this is also the reason why this issue becomes the focus for the marketers.
As the currency which admitted as the commodity currency, Canada also exported the raw oil, and one of its consumers is the US. So, when the world oil prices are getting higher, then the USD/CAD is also higher. This is why this currency is always stable at a high level is because of the uncertainty of the oil prices.
USD/CAD reached the Highest Level in Trading
The combination of factors which may support USD/CAD currency value has triggered the positive momentum for 2 sessions streak. These currency pair keep on getting its positive traction at the beginning of the Europe session. it was close to the top of seven weeks, right between 1.3400. that's amazing enough for the USD/CAD.
That positive momentum in two sessions helps this pair to build the bullish in one night up to 1.3400. not only reached the highest level of currency value, but this pair has also been stable enough on that top. So that they will only focus on renewing the economic projection and followed by the pers conference after the meeting.
So, the pair of USD/CAD may be in a good position now. But it will be weaker at any time because of the uncertainty that they are facing. It's important for BoC to keep on observing the market situation so that they will be able to give good decision again that can affect the USD/CAD.