Exchange rate predictions refers to a scenario where the trader or forex guru will study the data available to him or her and draw valid conclusions regarding what the likely outcome will be in a future time. Most often, the data generated from the rate predictions is known as the future rate. Trading in forex is all about taking calculated risks which involves forecasting the market direction in the nearest future.
CAD to USD exchange rate predictions refers to the art and act of predicting the future value the CAD/USD currency pair by taking a careful look at the current and past forex exchange rate of the pair.
FACTORS THAT DETERMINE THE CAD TO USD EXCHANGE RATE OUTCOME
For a prediction to come true, there are some factors that need to be kept under check and consideration. These factors are discussed below.
1. THE ECONOMY
One of the major controller of the world currency value is the local an US economy. This is largely so because the forex market is controlled by the USD and the USD in turn has a rate which is determined by the US economy. Before having an accurate CAD to USD exchange rate prediction, there is a great need to consider the US and Canadian economy.
2. FORCES OF DEMAND AND SUPPLY
The forces of demand and supply for the currency pair is one of the strong factors to be considered when making future rate predictions. While an increase in the demand for the CAD/USD currency pair, a decrease in demand will lead to a sharp fall in the exchange rate. An influx of foreign traders into Canada can boost the nature of the CAD/USD exchange rate.
3. COMMISSIONS AND LEVERAGES
Commissions charged on trading in the currency and the leverages also goes a long way in determining the forex exchange rates.
BENEFITS OF CAD TO USD EXCHNAGE RATE PREDICTIONS
A careful look at the CAD to USD exchange rate predictions has granted the following benefits to the forex trader.
Provision Of Guidance To The Trader. The CAD to USD exchange rate predictions can serve as a source of guidance to the trader on how to wisely invest in the market. The predictions will give a clear explanation on why the trader needs to either invest or pull out of the market.
At the time of writing this, the exchange rate of the CAD to USD was at 1USD per 1.27 CAD.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.