Canada... Uncle Sam's good friend, beautiful environment, deeply influenced by France, and half of the area is frozen. Here, some of the world's most surprising things have been created, such as basketball, baseball, maple syrup, and smart beans. Canada occupies most of North America, stretching from the Atlantic to the Pacific. It has10Each province and3Composed of individual territories, it is one of the most developed countries in the world. In terms of land area, Canada ranks second in the world, second only to Russia! Considering its size and contribution to the world, you can imagine Canada and its currency, the Canadian dollarforeign exchangeHow important is the role of the world.
Canada: Facts, Data, and Characteristics
Economic Overview Canada is a resource-based country, which means that its economic growth is mainly achieved through the utilization and export of its natural resources. According to the International Monetary Fund(IMF)According to relevant data, Canada's economic aggregate ranks tenth in the world, making it one of theG8One of the member states. It is also the seventh largest producer of gold and oil in the world. Despite the strong industrial and manufacturing industries, CanadaGDPThe main source is its service department. Three quarters of Canada's workforce is employed in its advanced service sector, creating the country'sGDP70%The output value of. Next time you see a Canadian, come forward and make a bet with him that he works in the service industry. In most cases, you will win. The real beginning of good fortune in the Canadian economy began with1989year1When the free trade zone agreement takes effect in January. This agreement removes all tariffs between the United States and Canada. In fact, Canada has exported more than70%Product. Monetary and fiscal policiesThe Bank of Canada is the supervisory authority for the country's monetary policy. Monetary policy decisions are formulated by the management committee. The management committee is composed of the bank president, senior vice president, and4Composed of Vice Presidents. Unlike other central banks, the Bank of Canada does not have a fixed time frame for policy adjustments. The management committee meets every day and can decide to change monetary policy at any time. The instructions of the Bank of Canada are similar to those of other central banks because their purpose is to ensure stable prices for the Canadian dollar, and the country's inflation rate is1%reach3%Within. The Bank of Canada achieves its goals through open market operations and continuous adjustment of bank interest rates.The Bank of Canada implements an open market operation policy by adopting a large transfer system(LVTS)Implemented.LVTSEnable commercial banks across Canada to complete their daily operations through mutual borrowing. The interest rate for these transactions is called the bank discount rate. By changing the bank discount rate, the Bank of Canada can control the amount of money in the economy. To make this more vivid, we assume that the bank discount rate is2.00%. At a regular meeting, the Bank of Canada believed that the depreciation rate of the Canadian dollar was higher than expected, which would lead to an increase in the prices of goods and services. Therefore, the Bank of Canada has decided to increase the bank discount rate to2.50%。 If the bank discount rate increases, the interest to be paid to the lender will increase. On the contrary, if the bank discount rate decreases, businesses and consumers will increase their loan amount. Now that consumers have less money in their pockets, their chances of spending are reduced, and further inflation will be prevented. A company with a clear mind will not raise prices when no one is willing to consume, will it? Understanding Canadian dollarsYou may wonder why the alias for the Canadian dollar is the name of the Canadian national bird, Luni... that's because Luni is engraved on the Canadian dollar coin. Let's take a look at Luni's attributes: Black cocaine and me In history, the price of black cocaine was comparable to the US dollar/The trend of the Canadian dollar is highly correlated. Usually, as oil prices rise, the Canadian dollar also rises. If oil prices are expected to increase in the coming years, then you definitely want to quickly sell the US dollar/All Canadian dollars have been sold. My working hours are short dollar/The Canadian dollar has maintained a narrow adjustment for most of the day. Only when American breakfast time overlaps with European trading hours and during US trading hours, the activity of this currency pair is relatively active. Unlike my best foreign friend, the US dollar Conduct USD/The key factor to note in the Canadian dollar trading is that its direction of change is closely related to changes in the US economic situation. Remember, besides being a neighboring country, the transaction volume between the United States and Canada is enormous. The US economy will prosper, and the Canadian economy will also prosper accordingly. So when you plan to trade Canadian dollars, take some time to see how the US economy is doing. But I am still very active during trading hours in the United States. The Canadian dollar will not show significant changes before the start of the US trading period. The Canadian dollar has had minimal fluctuations during both Asian and European trading periods. Important economic indicators related to changes in the Canadian dollar Consumer Price Index(CPI)Like other central banks, the goal of the Bank of Canada is to control inflation. Due to the fact that the Consumer Price Index tracks changes in the prices of goods and services, this data is closely monitored by currency traders. gross domestic product(GDP)：GDPIt is a measure of the overall economic situation of Canada. It reflects whether the economy is growing. Trade balance: Like other countries based on commodity transactions, Canada's economy is susceptible to the impact of import and export activities. IveyPurchasing Manager Index(PMI)：PMIIs the survey investigating whether the company's expectations for the economy are optimistic or pessimistic. Reading above50.0The baseline represents an improvement in business conditions, and vice versa. What factors affect the movement of the Canadian dollar?US Economic DataThe release time of US economic data is similar to that of Canada's economic data. Negative data in the US report and positive data in the Canadian report will lead to the US dollar/The Canadian dollar price has dropped significantly. On the contrary, positive data in the US report and negative data in the Canadian report will lead to the US dollar/The Canadian dollar price has skyrocketed. Mergers and AcquisitionsDue to the proximity of the United States and Canada, mergers and acquisitions between companies are very frequent. This has led to a large amount of funds flowing between the two countries, which is beneficial forForeign exchange transactionsThe market has a great impact. For example, in order for a US company to acquire a Canadian company, it must first convert US dollars into Canadian dollars to complete the transaction. Think about the amount of funds that need to flow from the foreign exchange market to complete this transaction. dollar/Canadian dollar transactionsdollar/The number of Canadian dollar transactions is measured in US dollars. A standard hand is10Ten thousand dollars, the mini hand is1Ten thousand US dollars. Each point's value is measured in Canadian dollars and in US dollars/The current price in Canadian dollars is a bit higher(0.0001)To calculate. Gains and losses are denominated in Canadian dollars. For a standard hand, the change value of each point is10 Canadian dollars. For a mini hand, the variation of each hand is1Canadian dollars. For example, in US dollars/The current exchange rate for Canadian dollars is1.1000So, the value of a standard hand is6.72USD. The calculation of margin trading is based on US dollars. stay100:1Under leverage, trading100,000USD in USD/Canadian dollars, required1,000USD. dollar/CAD Trading TechniquesBecause of the US dollar/The Canadian dollar movement is only most active during the US trading period, and there may be false movements during the other two trading periods. This means that during European trading hours, if the US dollar/The Canadian dollar has broken through a support level, and in most cases, this is only a false breakthrough. Viewing the differences between US economic data and Canadian economic data also determines the US dollar/An important step in changing the direction of the Canadian dollar. Because the release time of data from the United States and Canada only differs by a few hours or minutes, the difference between them will increase the degree of change in a certain direction. For example, negative US data and positive Canadian data will become selling dollars/A good reason for the Canadian dollar. Finally, in addition to focusing on economic data, spending some time studying changes in oil prices will also help with Canadian dollar trading. Because Canada is one of the world's major oil producing countries, changes in oil prices have a significant impact on the value of the Canadian dollar. In fact, since1988Since the beginning of the year, the US dollar/The reverse correlation between the exchange rate changes of the Canadian dollar and the changes in oil prices has reached68%。 How do you make use of this? If you notice an increase in gasoline prices in your location, you will be more certain that you can short the US dollar/Canadian dollars.
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