CAD is the three-letter code used to represent the Canadian dollar, the official currency of Canada. In the forex market, CAD is one of the major currency pairs that traders trade against other currencies, such as the US dollar (USD/CAD) or the euro (EUR/CAD).
The value of the CAD can be influenced by a variety of factors, including economic indicators such as inflation, employment, and GDP growth, as well as political and geopolitical developments that may impact trade and investment flows. Traders may use technical analysis tools and fundamental analysis factors to trade the CAD against other currencies and try to profit from its price movements.
CAD is also widely used in international trade and commerce, and is often affected by global commodity prices due to Canada’s significant exports of commodities such as oil, natural gas, and metals. Therefore, changes in commodity prices may have a significant impact on the value of the CAD in the forex market.