A brief Guide on USD to CAD Conversion

1. A brief Guide on USD to CAD Conversion Discussions regarding USD to CAD conversions are twirling wild on the internet. Currency exchange isn’t really a cakewalk for everyone, and if you are one of them, USD to CAD conversions or vice versa is going to be a roller coaster ride for you. Both the economic and political climates on either side of the border have an impact on the USD/CAD exchange rate. We'll examine issues that frequently have an effect on each nation below. But first, history! Over the previous ten years, the values of the two currencies have been very similar. It's interesting to note that during this time they have alternated between which currency has been the stronger. However, the only time the Canadian dollar was truly worth more than the US dollar was between 2011 and 2012 (when the USD/CAD exchange rate briefly fell below 1.00). The Canadian dollar was rising against the US dollar from late 2008, when the full effects of the 2008 financial crisis were beginning to affect the US, through mid- 2011.

2. However, during 2011–2012, the USD has regained its strength and climbed in value relative to the CAD, as evidenced by the USD/strong CAD's uptrend, which raised the exchange rate significantly through the middle of 2015. The US dollar was typically on the rise versus the majority of the other major currencies throughout that time period as well. Factors influencing USD/CAD The U.S. continues to receive the majority of its crude oil from Canada. Canada supplied 61% of all U.S. crude oil imports in 2020. Higher gasoline supplies frequently result in lower oil prices, which causes the CAD to fall. Additionally, when American oil output rises, the price of oil will decline much more. Already in 2017, a steep drop in oil prices hurt Canada and had a negative effect on the Canadian coin. The U.S. natural gas reserves are also a decisive factor.

3. Natural gas continues to be heavily exchanged between the nations, much like crude oil. Weekly reports on changes to the underground natural gas inventory are made accessible by the United States. When natural gas storage levels are high in the US, the demand is reduced, which lowers oil prices. The currency of a nation is significantly influenced by its political stability. Trump's anti-trade position, for instance, put large merchants like Canada under pressure. However, the CAD and other currencies anticipate a better trade policy following the political party transition. It’s a wrap! Several factors like GDP growth rates, interest rates set by the Fed, entitlements, total national debt, and budget deficit affect the currency exchange rates. However, as it can be concluded, the currency exchange dynamic for USD/CAD are more dependent on “black gold” than we might ever imagined. Stay tuned for more information regarding international Money Transfer. Whether you are looking for some insights, or you just want to send money to UK, Interchange Financial can be your one-stop solution to keep your currency exchange streamlined! www.interchangefinancial.com