When it comes to trading forex, there are literally hundreds of pairs to choose from, yet over 80% of trading volume centers around seven specific currencies. The Canadian dollar is one of them, and more and more people are deciding to trade CAD these days. Canada has been enjoying a long history of economic stability, political harmony, and peace, which makes CAD an ideal candidate for the title of “safe haven” currency. If you’re looking for a trading option that isn’t getting wrecked by Brexit or Trump, then look no further than the Canadian dollar.
The power behind CAD
Canada survived two recessions better than most countries and offers an amazing lifestyle for its citizens and residents. Thanks to some incredible foresight in fiscal policy, Canada has enjoyed low inflation in recent decades and doesn’t seem to be suffering from any major issues. The same cannot be said for the USA.
It’s not unusual that a trader will drop CAD in the same box as USD, given their geography, but that would be a mistake. Yes, some US issues bleed into Canada’s economy, but no more than with any other currency that is paired with USD. When the US was suffering a mortgage bubble, Canada remained safe. When the commodity boom of the 2000s got into full swing, the loonie outperformed USD consistently. This is perfectly normal for a commodity-based economy that has little to no tech companies in the financial mix.
Should you trade CAD in 2019?
The Canadian dollar is the fifth most preferred reserve currency, and it is gaining popularity at an incredible rate. This increase in trading volume is possibly due to the Brexit volatility of GBP and the euro, and the antics of US President Donald Trump. In addition, oil analysts and the world’s media have now forecasted an increase in drilling activities for 2019 to match rising demand. Whenever the world cries out for oil, Canada’s economy goes up, and those who trade CAD early get to enjoy the benefits.
The bottom line
For now, those choosing to trade CAD can happily avoid the Trump and May volatility. CAD traders can also see some exciting returns as the world’s oil import demand continues to rise. Like a perfect storm, 2019 might well turn out to be an amazing year for Canada, and it could for you too. As Q1 comes to an end, register with Exness and get access to 11 pairs in which CAD is expected to strengthen.
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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation.
This article is not prepared in accordance with legal requirements promoting independent investment research. Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.