USD/CAD: US dollar / Canadian dollar

USD/CAD is the price of one US dollar in Canadian dollars. At 1.3500, one US dollar buys 1.35 Canadian dollars; a rising price means the US dollar is strengthening against the Canadian dollar, and a falling price means the Canadian dollar is gaining. The Canadian dollar is nicknamed the "loonie" after the loon, a bird pictured on the one-dollar coin introduced in 1987, and traders use the name for the pair too.

The pair connects two economies more tightly integrated than almost any others in the world. It is also one of the most commonly cited examples of a "commodity currency" pair, because of Canada's role as an oil exporter. This profile covers who trades it, what moves it, how it behaves through the day and what to watch as a beginner.

What USD/CAD is and who trades it

In the BIS Triennial Central Bank Survey of April 2025, USD/CAD accounted for a little over 5% of global FX turnover, about half a trillion dollars a day. That made it the fifth most traded pair, just ahead of AUD/USD. The Canadian dollar was the eighth most traded currency.

Participants include:

• Canadian and US companies trading goods, energy and services across the border.
• Energy producers, who earn US dollars from oil and gas sales and convert them into Canadian dollars.
• Canadian pension funds, among the largest institutional investors in the world, which hold big US and global portfolios.
• Foreign investors in Canadian bonds and equities.
• Hedge funds and banks trading rate differentials and oil views.
• Retail traders, for whom the pair offers a mix of familiar US drivers and Canadian specifics.

See how the forex market works for the broader context.

The two economies and central banks behind it

Canada and the Bank of Canada

Canada is a large, open economy with significant natural resources: crude oil, natural gas, metals, timber and agricultural goods. The United States is by far its largest trading partner, buying the large majority of Canada's goods exports, including most of its crude oil.

The Bank of Canada (BoC) targets 2% inflation, the midpoint of a 1–3% range. It announces policy decisions on eight fixed dates a year at 09:45 Eastern Time, which is 14:45 UK time for most of the year. Four of those decisions come with the quarterly Monetary Policy Report and its updated forecasts.

Key Canadian data include the monthly Labour Force Survey (usually released at 08:30 Eastern Time, often on the same Friday as the US employment report), CPI inflation, GDP and retail sales, all from Statistics Canada.

The United States and the Federal Reserve

The dollar side reflects the Federal Reserve and US data. Because the two economies are so intertwined, US developments often affect Canada too, which means the pair reacts most strongly to divergence: a Canadian slowdown the US does not share, or a Fed that moves faster than the BoC. See central banks and interest rates.

What typically moves USD/CAD

Policy divergence. The single most persistent driver has been the gap between the expected paths of BoC and Fed rates. When markets expect the BoC to cut more or sooner than the Fed, USD/CAD has tended to rise. See interest rate differential.

Oil. Canada's large crude exports mean that oil prices have often been reflected in the loonie: higher oil has tended to support the Canadian dollar and push USD/CAD lower. But the relationship is far from constant. It was strong in some periods and weak in others, as pipeline constraints, the discount on Canadian heavy crude and the US's own oil production all complicate the picture.

Trade. Tariff threats, trade negotiations and changes in US demand go straight to the heart of Canada's economy. The renegotiation of the North American trade agreement in 2017–2018 and later tariff disputes all moved the pair.

Data. The Canadian jobs report and CPI are the most closely watched domestic releases. On days when Canadian and US jobs figures come out at the same moment, the pair can lurch in one direction and then the other. Read how economic data moves forex.

Risk sentiment. In global sell-offs, the US dollar has usually gained against the Canadian dollar.

See what moves currency prices for the general framework.

Character and behaviour by session

Times below are UK time; the market hours tool shows them in your own time zone.

• Asian session (about 00:00–07:00): usually the quietest period for USD/CAD. Neither of its home markets is open, and spreads can be wider.
• London morning (about 07:00–13:00): activity increases, but the pair often waits for North America.
• North American session (about 13:00–22:00): the main event. US and Canadian data arrive at 13:30 (12:30 during the weeks in March and late October to early November when US and UK clocks are out of step), BoC decisions at 14:45, and the London/New York overlap until about 17:00 is usually the most liquid window.
• Rollover (around 22:00): spreads widen briefly.

Canada and the US change their clocks on the same dates, so the gap between Toronto and New York never changes; it is only the UK offset that shifts. Our guide to forex market hours and sessions explains the seasonal timings.

USD/CAD has generally been one of the calmer majors in day-to-day terms, reflecting the closeness of the two economies, but it can move sharply on oil shocks, policy surprises and trade headlines.

Costs of trading USD/CAD

USD/CAD is a liquid major, though spreads at most brokers are usually a little wider than on EUR/USD or USD/JPY and can widen noticeably outside North American hours. They also widen around data, BoC decisions and the rollover. Compare the all-in cost using how to compare trading costs and check typical spreads as described in why spreads widen.

Swaps reflect the difference between US and Canadian interest rates plus the broker's mark-up. Because the two central banks have often kept rates fairly close together, swaps in both directions have frequently been small charges. When the gap widens, the higher-yielding side earns the better swap. See swap and overnight financing.

Pip value: a worked example

A pip on USD/CAD is 0.0001. With the Canadian dollar as the quote currency, pip values are fixed in Canadian dollars:

• 1 standard lot (100,000 US dollars): 10 Canadian dollars per pip
• 1 mini lot (10,000 US dollars): 1 Canadian dollar per pip
• 1 micro lot (1,000 US dollars): 0.10 Canadian dollars per pip

To convert to US dollars, divide by the USD/CAD rate. Example (illustrative numbers): at 1.3500, 10 Canadian dollars is about 7.41 US dollars, so a standard lot is worth about 7.41 US dollars per pip.

Suppose you sell 0.4 lots at 1.3500 with a stop-loss 35 pips away at 1.3535. Each pip is worth 4 Canadian dollars, so the loss if stopped is 140 Canadian dollars, about 104 US dollars at that rate, plus costs. The margin at 30:1 on a 40,000-US-dollar position is about 1,333 US dollars. The pip value calculator converts this into your account currency; what is a pip and position sizing explain the method.

Correlations with other pairs

• AUD/USD and NZD/USD are also commodity-linked, but with the US dollar as quote they tend to move inversely to USD/CAD on broad dollar days. See AUD/USD.
• EUR/USD and GBP/USD also tend to move inversely to USD/CAD when the US dollar is the main driver.
• USD/CHF and USD/JPY share the US dollar as base, so they often move in the same direction as USD/CAD on dollar-driven days.
• Crude oil is not a currency, but over many periods it has been one of USD/CAD's closest outside correlates, usually inversely.

All correlations drift. A short USD/CAD position combined with long AUD/USD is, much of the time, a double bet against the US dollar. See currency correlation.

Notable history

• January 2002: the low point. The Canadian dollar fell to a record low of about 62 US cents (USD/CAD near 1.62) in January 2002, according to contemporary reports.
• September 2007: parity. Helped by booming commodity prices and a weakening US dollar, the loonie reached parity with the US dollar on 20 September 2007 for the first time since 1976, and went on to trade above parity later that year.
• 2008: the crisis. As oil and risk appetite collapsed in the second half of 2008, the Canadian dollar fell sharply.
• 2014–2016: the oil slump. The fall in crude prices from mid-2014 weighed heavily on the Canadian dollar and prompted Bank of Canada rate cuts in 2015, a clear example of the oil link working.

Trading USD/CAD as a beginner

• Know the North American calendar. Most of the pair's significant moves cluster in the 13:30–15:00 UK window on data and BoC days. An economic calendar shows what is coming.
• Be careful on double jobs Fridays. When US and Canadian employment figures land at the same time, the reaction can be fast and two-sided, and spreads can widen. Read slippage explained.
• Don't treat oil as a trading signal. The oil link is real but unreliable over short periods.
• Watch your dollar exposure. USD/CAD positions often overlap with other dollar trades.
• Respect leverage. USD/CAD qualifies for 30:1 under ESMA because both currencies are on its list of majors; a 3.3% adverse move would consume a fully margined position. Most retail CFD accounts lose money. See leverage and margin.

Frequently asked questions

Why is the Canadian dollar called the loonie?

Canada's one-dollar coin, introduced in 1987, features a loon. The coin quickly became known as the loonie, and the name spread to the currency and to the USD/CAD pair.

Does the price of oil move USD/CAD?

Often, but not always. Because Canada is a large crude exporter, higher oil prices have tended to support the Canadian dollar and push USD/CAD lower. Over some periods the link has been weak, as interest rates, trade and risk sentiment have mattered more.

What time does the Bank of Canada announce rates?

At 09:45 Eastern Time on eight scheduled dates each year, which is 14:45 UK time for most of the year. Check the Bank of Canada website for the exact dates.

Is USD/CAD a major pair under ESMA rules?

Yes. Both the US dollar and the Canadian dollar are on ESMA's list of major currencies, so retail clients in the EU can trade USD/CAD at up to 30:1 leverage. That differs from AUD/USD and NZD/USD, which are capped at 20:1.

When is USD/CAD most active?

Mainly during North American hours, from about 13:00 to 17:00 UK time, when New York and Toronto overlap with London. The pair tends to be quiet during the Asian session.