Major pair

USD/CAD(Loonie)

USD/CAD, nicknamed "Loonie" after the bird on the Canadian dollar coin, is heavily correlated with crude oil. Canada is the fourth-largest oil producer globally, and CAD strength tracks oil prices closely.

0.8 to 1.8 pips

Typical spread

60 to 90 pips

Daily range

$7 to $8

Pip value / lot

NY session (8 AM to 5 PM ET)

Best session

What is USD/CAD?

USD/CAD pairs the United States Dollar against the Canadian Dollar. The Canadian Dollar is a commodity currency tied tightly to crude oil. When oil prices rise, CAD strengthens and USD/CAD typically falls. When oil collapses, USD/CAD rallies.

The two economies are also deeply integrated: roughly 75% of Canadian exports go to the US, and Bank of Canada policy often shadows the Federal Reserve. The pair tends to have lower realized volatility than other commodity-currency majors as a result.

Base currency: USD (US Dollar, United States)
Quote currency: CAD (Canadian Dollar, Canada)
Pip location: 4th decimal (0.0001)
Volume share: about 4% of daily global forex turnover

When to trade USD/CAD

USD/CAD is unique among majors: its prime trading window is the New York session (8 AM to 5 PM ET), not the London-NY overlap. Canadian markets sync with US hours, and most BoC and Canadian-data releases drop during US morning.

Avoid the Asian session (1 to 11 PM ET) — spreads widen, range is thin, and CAD-specific catalysts are absent. The pair occasionally produces clean breakouts on crude inventory releases (Wednesdays at 10:30 AM ET) that can be traded mechanically.

Best session: NY session (8 AM to 5 PM ET)
Avoid: Asian (1 PM to 11 PM ET, illiquid for CAD)

News events that move USD/CAD

Bank of Canada rate decisions (eight per year) and Canadian CPI are the highest-impact CAD events. Both routinely produce 60 to 100 pip moves. BoC press conferences 45 minutes after rate decisions add the directional bias.

Crude oil inventory data (every Wednesday at 10:30 AM ET) is the wildcard. A surprise draw or build can move USD/CAD 30 to 50 pips, sometimes more during low-liquidity weeks. FOMC and NFP also matter, but typically through their effect on USD broadly, not CAD.

Central banks: Federal Reserve (Fed), Bank of Canada (BoC)
Key releases: BoC rate decisions, Canadian CPI, Crude oil inventories, FOMC, NFP

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

USD/CAD FAQ

Why is USD/CAD called "Loonie"?

The Canadian one-dollar coin features a loon (a North American bird) on its face. Traders started calling the currency "the loonie," and the nickname spread to the USD/CAD pair.

Why is USD/CAD correlated with oil?

Canada is the fourth-largest oil producer in the world. Higher oil prices mean more revenue for Canadian exporters and a stronger CAD. The inverse correlation between USD/CAD and crude is typically -0.6 to -0.8 on weekly closes.

When is the best time to trade USD/CAD?

The New York session (8 AM to 5 PM ET). Unlike most majors, USD/CAD lacks a London prime window — Canadian markets sync with US hours, so the bulk of moves happen during NY.

How does crude oil inventory data affect USD/CAD?

EIA crude inventory data drops every Wednesday at 10:30 AM ET. A surprise draw (less inventory than expected) typically pushes CAD higher and USD/CAD lower. A surprise build does the opposite.

What is the typical spread on USD/CAD?

0.8 to 1.8 pips on most ECN brokers during NY hours. Slightly wider than EUR/USD due to lower liquidity. Asian session can see 2 to 4 pip spreads.

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