The USD/CAD pair is heavily influenced by various economic factors, including interest rates, inflation rates, GDP growth, and geopolitical events in both the United States and Canada. These factors can impact the supply and demand dynamics of the currencies, leading to fluctuations in the exchange rate.
The Canadian dollar is often influenced by commodity prices, particularly oil, as Canada is a major exporter of crude oil. Changes in oil prices can have a significant impact on the Canadian economy and, consequently, the value of the Canadian dollar.
