The USD/CAD is also known as the Loonie (this is due to the loon bird which makes an appearance on Canadian dollar coins) and correlates with commodity prices, oil in particular as this is Canada's main export. It is also affected by the interest rate differential between the US and Canada. You should also note that oil is priced in US dollars when traded in the commodity market, therefore, Canada can gain a lot of US dollars by exporting oil. On the markets, the value of the CAD will appreciate compared to the USD if the price of oil also rises. Therefore, most traders interested in this currency pair will also keep their eye on Brent Crude and WTI Crude to gauge the value of the USD/CAD.


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