The economics of Canada is considered as one of the world’s most stable economics, and the export of raw materials predominates in the GDP structure. In particular, Canada is one of the world’s main suppliers of gold and has oil reserves eighth in size in the world. That’s why the Canadian dollar is called a "commodity currency", and it would be wise to take into account the state of precious metals and oil markets when analyzing the price dynamics of USDCAD.
Another crucial factor for the price formation of Canada’s national currency is the policy of the Governing Council of the Bank of Canada concerning the inflation control. The key inflation indicator is the Consumer Price Index whose variations influence the monetary police of the Bank that tries to retain inflation within the limits of 3%. USDCAD is highly liquid and is capable of significant movements, which can bring profits in both short-term and middle-term prospects, when sticking to investment, speculative or arbitrage strategies.
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