Excerpt from: Forex Training
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| September 28, 2007 | | Candian dollar parity in currency trading | This past week, a lot has been said about Canadian dollar parity with the U.S. dollar in currency trading. In forex trading, a currency reaches parity when it very nearly the same value as another currency. In the case of the Canadian dollar, this means that one CAD is roughly equal to one USD.
This is significant because this hasn't happened in three decades. Indeed, the U.S. dollar is usually worth a good deal more than the Canadian dollar. And for a brief time, CAD was even ahead of USD on the FX market.
Canadian dollar move to parity in currency trading is a sign that the Canadian economy is doing well, able to support the loonie, while the U.S. economy is floundering, leading to a weak greenback.
| Topic Tags: Canadian dollar currency trading, Canadian dollar parity, currency trading, forex trading, forex trading Canadian dollar, FX market, U.S. dollar currency trading, USD FX market | |
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