Characteristics of EURCAD
Many traders avoid cross rates due to their relatively low volatility and the high commission charged by the broker in the form of a spread.
However, not all forex currency pairs, traditionally referred to as exotic, have low liquidity and high commission requirements.
For example, EURCAD combines the interaction of highly developed countries such as Germany, France, and other members of the European Union with equally developed Canada and its advanced industrial complex.
The economic relationship between the developed European Union and industrialized Canada generates increased interest in this currency pair, and consequently, the volatility and spread size for this cross rate are practically on par with those of the most popular assets.
EUR The euro is the second most popular and traded currency globally, serving as the primary currency for the European Union. It is one of the most complex currencies to analyze, as each member of the European Union, in one way or another, influences Europe as a whole, and therefore the euro.
When analyzing the EUR, the first thing to pay attention to is the EU's monetary policy, not interest rate hikes or cuts. The EUR is also magically affected by speeches by the central bank governor and various political crises.
When analyzing the EUR, one should focus on studying the macroeconomic indicators of major players in the European Union, such as Germany, France, and Italy. When analyzing the macroeconomy, one should primarily pay attention to the gross foreign product, unemployment and employment data, data on the growth or decline of industry, the agricultural sector, and so on.
It is worth noting that the European Union is the largest importer of various raw materials, so falling prices on the raw materials market also have a positive impact on the growth of the European currency.
When trading on the news, one should not ignore the terrorist attacks that have been taking place recently in Europe due to the severe migration crisis.
CAD is the most popular commodity currency and is a national treasure. Canada is one of the most industrially developed countries, trading various industrial technologies alongside global giants and being the world's largest oil supplier.
Unlike the European Union, rising commodity prices, especially oil prices, don't lead to a decline in the CAD, but rather to its strengthening and growth. If you decide to analyze the Canadian dollar, the first step is to monitor global oil prices, as there is a direct correlation between the two.
In addition to the obvious correlation between oil prices, we shouldn't forget about interest rates and monetary policy in general. We should also remember that key macroeconomic indicators such as GDP, trade balance, unemployment and benefits data have a very strong impact on the Canadian dollar.
Canada is an industrialized country, so data on growth or decline in the industrial sector is quickly reflected by traders on the chart.
In addition to the obvious fundamental indicators, natural disasters play a significant role. For example, the recent fire near an oil field had a significant impact on global oil prices and the Canadian dollar overall.
When analyzing EURCAD, we consider not only the EUR and CAD, but also key trading partners such as the US and Japan. It's also worth noting that EURCAD lends itself well to technical analysis, and its average intraday movement of 120 to 350 pips allows for even the most sophisticated strategies to be implemented scalping strategies.
