Characteristics of EURCAD
Many traders avoid cross rates due to the rather low volatility and high commission set by the broker in the form of a spread.
However, not all currency pairs on Forex, which we traditionally call exotic, have weak liquidity with high commission requirements.
For example, EURCAD combines the interaction of such highly developed countries as Germany, France and other members of the European Union with the equally developed Canada and its developed industrial complex.
The economic relations of the developed European Union with industrialized Canada generate increased interest in this currency pair, and therefore the volatility and size of the spread for this cross rate are practically in no way inferior to the most popular assets.
EUR – the second most popular and world-traded currency, which is the main one for the countries of the European Union. The euro is one of the most difficult currencies to analyze, since each member of the European Union, in one way or another, affects the whole of Europe as a whole, and therefore the EUR.
When analyzing the EUR, first of all you should pay attention to the monetary policy of the European Union, namely not increasing or decreasing the interest rate. Speeches by the head of the central bank and various political crises also have a magical effect on the EUR.
Further, when analyzing the EUR, emphasis should be placed on studying the macroeconomic indicators of such heavy players in the European Union as Germany, France, and Italy. When analyzing macroeconomics, first of all, pay attention to the gross external product, data on unemployment and employment, data on the growth or decline of industry, the agricultural sector, etc.
One should not discount the fact that the European Union is the largest importer of various raw materials, so falling prices on the commodity market also have a positive impact on the growth of the European currency.
When trading on news, one should not ignore the terrorist attacks that have recently taken place in Europe due to the strong migration crisis.
CAD is the most popular commodity currency and is the heritage of Canada. Canada is one of the most industrialized countries, which, on a par with the world giants, trades in various technologies in the industrial field and is the world's largest oil supplier.
Unlike the European Union, an increase in the price of raw materials, and especially oil, does not lead to a fall in the CAD, but, on the contrary, to strengthening and growth. If you decide to analyze the Canadian, then the first thing you need to do is monitor world oil prices, since there is a direct correlation between them.
In addition to the obvious relationship with oil, do not forget about the interest rate and monetary policy in general. We also remember that such basic macroeconomic indicators as GDP, trade balance, unemployment and benefits data have a huge impact on the Canadian dollar.
Canada is an industrialized country, so data on growth or decline in the industrial sector quite quickly finds a reaction from traders on the chart.
In addition to the obvious fundamental indicators, natural disasters occupy not the least place. So the latest fire near an oil field greatly affected its world price and the Canadian currency as a whole.
When analyzing EURCAD, we look not only at EUR and CAD, but also at major trading partners such as the USA and Japan. It is also worth noting that EURCAD lends itself well to technical analysis, and its average intraday movement from 120 to 350 points allows you to implement even the most sophisticated scalping strategies.